The so-called renewed meme stock phenomenon this year is nothing like the one the world witnessed in 2021, says Vlad Tenev, the chief executive of Robinhood Markets Inc (NASDAQ: HOOD).
Tenev made the revelation in a post-earnings interview with CNBC today.
On Thursday, Robinhood reported another strong quarter, with net income more than doubling to $386 million and revenue racing up 45% on a year-over-year basis to $989 million (both handily above estimates).
At the time of writing, Robinhood stock is up more than 200% versus its year-to-date low in April.
Tenev’s view on the resurging meme stock phenomenon
While some market watchers have pointed to recent volatility in names like Kohl’s as evidence of a meme stock resurgence, Tenev was quick to draw a distinction between today’s retail behavior and the frenzy of 2021.
“It’s not like 2021 where that was driving things,” Tenev told CNBC, referring to the meme stock mania that saw GameStop and AMC soar to dizzying heights. “It’s sort of much lower on the totem in terms of what’s driving the volume.”
Instead, Tenev emphasized that Robinhood’s data shows a clear shift in investor focus. The top-traded stocks on the platform are no longer speculative plays or social media darlings. Rather, they’re companies at the forefront of technological innovation.
“You look at what customers are trading and buying and what they’re depositing for. It tends to really be AI and electric cars,” he explained. “Frontier innovation companies are driving most of the volume.”
Robinhood’s chief executive’s remarks suggest retail investors are increasingly aligning with long-term secular trends rather than chasing short-term hype. He even echoed their sentiment, saying, “I agree that we’re at the very early stages of a massive platform shift.”
Despite their explosive move to the upside, Wall Street analysts continue to rate HOOD shares at “overweight” on average.
What prediction markets mean for Robinhood stock in 2025
While meme stocks may be fading from the spotlight, Robinhood is seeing explosive growth in a different corner of its business: prediction markets. Tenev described the segment as “very much on the frontier,” noting that it’s growing faster than anticipated and already generating double-digit millions in annual run rate.
“We did over a billion contracts in prediction markets in Q2,” he said, highlighting the scale of engagement.
Initially viewed as a niche tied to election cycles, prediction markets have proven to be far more dynamic. “People thought prediction markets were only an elections thing,” Tenev noted. “But actually, it doubled quarter over quarter for us.”
Robinhood has leaned into sports-related prediction markets, which Tenev described as a “differentiated offering.” He emphasized the diversity of events available, saying, “There are new events happening all the time.”
With nine business lines already generating over $100 million in annual revenue, prediction markets are one of the emerging segments that Tenev believes are “on track” to join that elite tier.
Amidst continued growth, analysts see upside in Robinhood shares to as much as $130, up another 24% from here.
Crypto remains a significant business for HOOD shares
Tenev also addressed the role of crypto trading within Robinhood’s broader business model.
Currently, a “double-digit percentage” of the company’s revenue, crypto has seen fluctuations in line with broader market volatility. Still, Tenev remains bullish on its long-term potential.
“Over the long run, it has tended to go up,” he said, referring to crypto’s contribution to Robinhood’s revenue.
When asked to project its future share of the business, Tenev resisted giving a fixed number. Instead, he framed crypto as a foundational layer for future financial infrastructure.
“I think crypto trading is going to become the infrastructure layer behind real-world assets,” he said.
Tenev’s comments reflect a broader vision for Robinhood stock, one that goes beyond trading and into the architecture of financial innovation.
Whether through tokenization, prediction markets, or exposure to private companies, the platform is positioning itself at the intersection of retail access and frontier finance.
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