Robinhood CEO Vlad Tenev on the free-trading app going public

Robinhood CEO and co-founder Vlad Tenev on Thursday defended retail clients who invest in so-called meme stocks, saying the phenomenon gives embattled companies access to capital they otherwise wouldn’t have.

“I think it’s a real thing. There’s customers that love these companies, they want them to thrive,” Tenev told CNBC’s Andrew Ross Sorkin on Thursday ahead of the stock trading app’s Nasdaq debut. “You’re seeing [meme stocks] also get resources that allow them to hire really good management teams, in some cases, and then build for the future.”

Robinhood helped draw unprecedented levels of new, younger traders to the stock market during the pandemic. That surge has continued into 2021, marked by frenzied trading around meme stocks.

The millennial-favored stock trading app found itself in the middle of a firestorm in January amid the short squeeze in GameStop, which was partially fueled by Reddit-driven retail investors.

“I think what’s interesting with what we’ve seen in retail investing over the past year is that a lot of these companies have been hit hard by the pandemic,” Tenev said.” “It started with some of the airlines and then followed with some of the retailers, some movie chains and brick and mortar. You have the institutions that are basically writing these companies off and then retail investors coming in and keeping them up and supporting them.”

At the height of the meme stock surge, Robinhood restricted trading of certain securities due to increased capital requirements from clearing houses. Robinhood raised more than $3.4 billion in a few days to shore up its balance sheet.

“I don’t know if people have understood the ramifications of what high retail participation in the markets means but I think fundamentally it’s a very good thing,” added Tenev.

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[Aquhaaa]

You think citadel will short 110 million shares of robinhood?

[gringadoor]

Slimey dude knows exactly who his loyalty is to and it's not the retail investor.

[coolguy]

I wonder if Robinhood will disable the 'buy' button on it's IPO. It's only fair.

[cryptomatic]

Robinhood steal from the poor and give to the rich this guy is a hypocrtat

[ygtt]

The stock with the most retail presence is $AMC

[noblephares]

“Can’t share the exact allocation details” Retail 5% Establishments 95%

[miadahhajbi]

Stop stealing from poor to give poor you homeless the world

[nobadyouth]

He's been coached up pretty good since being torn apart by congress

[NationalDex]

he is a criminal, let the market actually be free, stop bailing out the rich

[JoinFolks]

Shorting HOOD would probably be the most ethic trade these days.

[khms]

How can he still say that they are working for retail investors when they are selling data to rich hedgefunds and making them rich.

[mrxxbrian]

when do options open so i can buy puts on robinhood with robinhood

[guyanaoil]

Crook taking our orders but not putting it in the market.

[Dean-qecl]

You Can Say What You Want About Robinhood But it is Delivering Stock Investing For the Masses.

Also Robinhood Stock in 10 Years Time Could Make You a Millionaire.

[txbre]

I left Robinhood after what they did yo the retail traders last winter

[matthewstone]

Hey Vladimir how's the share price buddy?

[bunnynv]

I come from the future you are going to regret going public 😂 apes remember

[garry]

Both of these guys need someone else to pick out their socks for them

[Thetheoneandonly]

WallStreet is crazy. Criminals in suits.

[NefariousEnough]

Vlad doesn't realize his company is going to become what he allowed it to create which isn't a road to stardom.