**Robinhood CEO Hopes to Jumpstart Stock Price**
The co-founder and CEO of Robinhood, Vlad Tenev, spoke to Yahoo Finance Live about his efforts to boost the online trading platform’s stock price. He expressed his optimism that these efforts will ultimately impact Robinhood’s stock value.
***Performance comparison against rivals***
Robinhood’s stock is down 1% over the past year, in sharp contrast to the S&P 500’s 14% gain. Additionally, its rivals, Charles Schwab and Morgan Stanley, have recorded drops of 23% and 10%, respectively, during the same period. At $9.55 a share, Robinhood’s stock remains 75% shy of its 2021 IPO price.
***Strategic developments***
This year, Robinhood has achieved a number of significant milestones. Last week, it announced its plans to launch in the UK in early 2024, offering services such as the selection of 6,000 US stocks and 24-hour trading five days a week. This signifies the company’s third attempt to enter the UK market, with this latest venture backed by a license from the UK markets regulator, the Financial Conduct Authority.
In the US, Robinhood introduced 24-hour trading on some stocks and ETFs in May of this year, expanding the feature over time. The company is also set to launch futures trading in 2024, pending regulatory approval, and is acquiring credit card startup X1 for $95 million as part of its plans to introduce a credit card offering next year.
***Performance outlook***
Despite these developments, Wall Street has remained lukewarm towards Robinhood’s stock. JP Morgan analyst Ken Worthington issued a cautious note expressing skepticism about the company’s long-term growth prospects and ability to generate competitive margins. Meanwhile, Tenev remains optimistic, stating on the company’s November earnings call that the platform could potentially generate “nine figures” in annual revenue.
***Conclusion***
Robinhood’s efforts to revitalize its stock performance are being closely watched by investors and analysts. While the platform has been expanding its offerings and making a push into global markets, the long-term sustainability and profitability of these initiatives are still being questioned.
As the CEO strives to turn the tide and regain investor confidence, all eyes are on Robinhood to see if its strategic moves will yield the desired outcome.
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