Robinhood’s stock drops 8% despite CEO Tenev remaining bullish on cryptocurrency trading

Despite a decline in Robinhood’s stock on Feb. 25, chair and CEO Vlad Tenev expresses unwavering confidence.

During an interview on “Bloomberg Crypto” with Sonali Basak and Tim Stenovec, Tenev remarked, “The business has been performing exceptionally well.” He pointed to impressive fourth-quarter 2024 results, emphasizing a milestone of $1 billion in revenue and $50 billion in customer deposits throughout the year.

When questioned about the market correction reflected in Bloomberg’s Magnificent Seven index, Tenev indicated that the downturn was likely short-lived. The post-earnings rally from last week has since diminished, coinciding with a broader market decline that saw Bitcoin (BTC) dip below $87,000.

Robinhood shares decreased by 8%, closing at $45.92, yet they remain up 16% since the beginning of the year. The stock’s drop aligned with a general market recession, though Tenev did not pinpoint any specific reason other than typical market fluctuations.

In spite of the setback, Tenev maintains a positive outlook on user engagement. “Our customers…have a long-term view on these matters,” he stated, highlighting that many perceive market downturns as chances to acquire technology stocks and cryptocurrencies such as Bitcoin at reduced prices.

Trading remains vibrant

Tenev also mentioned that volatility is advantageous for Robinhood. Active traders are continually utilizing features such as the new Robinhood Legend platform, which has generated $50 million in annual revenue since its introduction. With many leading technology stocks entering correction phases, this trading momentum could facilitate steady revenue growth for the platform.