Robinhood is a 'reliable platform' amid market volatility: CEO
Shares of Robinhood (HOOD) are rising after the company reported that its cryptocurrency revenue grew 161% year-over-year while also revealing record revenue of $682 million and adjusted earnings of $0.21 per share. Robinhood CEO Vladimir Tenev joins Wealth! to discuss the trading platform's second quarter earnings and outlook for the second half of the year. Tenev explains that July volumes were 20% higher than in June, which was the last month in the quarter. He adds that August is usually a quiet month for retail trading, yet Robinhood saw $1 billion in net deposits in the first week of August. On Monday alone, the platform saw nearly half a billion in net deposits while other brokerage competitors faced various issues, which he sees as a testament to Robinhood being a "reliable platform" especially amid volatility. Robinhood has seen more buying than selling in August, highlighting that investors view volatility as an opportunity to employ different trading strategies and buy stocks at discounted prices. Robinhood Gold subscribers reached a new record of 2 million, a 61% increase year-over-year. "We offer our Gold subscribers lower prices across all of the products that are in Gold, and that leads to higher wallet share and increased multi-product adoption. One stat that I use is Gold subscribers adopt retirement at 5x the rate of non-Gold subscribers, and this leads to higher ARPU (average revenue per user) and increases our ability to lower prices further, and leads to the diversified business you're seeing today," Tenev explains. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl
