Robinhood, already seen as a recovering stock, has even bolder plans for 2025.

Vlad Tenev, CEO of Robinhood, is experiencing a positive moment during this holiday season. After going through a challenging period following the company’s IPO in 2021—a time when the shares of the commission-free trading app plummeted by more than 90% due to sudden trading restrictions on certain meme stocks—the firm has been recognized as the "comeback stock" of the year by Yahoo Finance. In a recent Zoom conversation, Tenev expressed his satisfaction at receiving this recognition. He mentioned that in the early days of the company, people seemed to support them, but they later began to be perceived as an established competitor, creating an unfavorable environment. Despite having grown considerably, the negative perception persisted, especially during the pandemic, but now the outlook is hopeful.

Tenev feels particularly excited about what is to come. Like many entrepreneurs in the fintech sector, he expresses optimism about the possibility of a second Trump administration, mainly because it seems deregulation and greater acceptance of cryptocurrencies would be on the horizon. He plans to make the most of this shift in the environment.

In their conversation, Tenev touched on various topics, from the proliferation of job offers to the growing importance of cryptocurrencies. They discussed copy trading, a strategy that allows users to automatically replicate the trades of other traders. They also mentioned prediction markets, where Robinhood aims to compete with new startups like Kalshi and Polymarket, which focus on allowing bets on the outcomes of future events.

During the conversation, Tenev noted that approximately one in ten Americans with brokerage accounts has a Robinhood account, although the firm represents only a small percentage of total retail assets in the United States. Despite this, the company has grown, and its assets under management have increased by more than 40% year over year.

When asked about prediction markets, Tenev expressed that he has been a strong advocate for these for years, believing that political contracts are an ideal product in this space due to their relevance in the news and their correlation with market performance. The demand for these products was evidenced by the recent launch of a market related to the U.S. presidential elections, which generated over half a billion contracts traded in just one week.

Tenev also mentioned that Robinhood is considering expanding its presence in event contracts, and while sports contracts are not allowed at this moment, there could be changes in regulations. He suggested that event contracts could cover a variety of topics, from economic events like Federal Reserve decisions to entertainment awards, reflecting an intersection between news and financial markets.

This focus on product diversification underscores the company's desire to adapt to a world where news and entertainment are increasingly intertwined, offering users a range of attractive options in the future.