Latest news with #RobinhoodMarketsInc
Los Angeles Times
11-07-2025
- Business
- Los Angeles Times
Robinhood CEO's AI math startup valued at nearly $900 million
Harmonic AI, an artificial intelligence startup co-founded by Robinhood Markets Inc. Chief Executive Officer Vlad Tenev, has raised $100 million in funding to tackle a problem that has sometimes confounded AI models: math. The Series B funding round was led by Kleiner Perkins, with participation from Sequoia Capital, Index Ventures and Paradigm. The deal values the AI startup at $875 million, said Tenev, who serves as the company's executive chairman, a non-operating role. Harmonic's CEO is Tudor Achim, who previously led autonomous driving startup Founded in 2023 by Tenev and Achim, the Palo Alto, California-based startup aims to build AI systems that can solve complex math problems, creating what the company refers to as mathematical superintelligence. Harmonic plans to make its flagship AI model, Aristotle, available to researchers and the general public later this year. 'The near-term goal is to build an AI that solves math problems at a level that is superior to any human,' Tenev told Bloomberg News. 'The ultimate goal would be to solve major unsolved mathematical problems and expand that to problems in physics and computer science.' Tenev said Harmonic's math-first approach should give it an advantage over large language models, which underpin AI chatbots and are generally not as adept at solving complicated math problems. Harmonic also seeks to eliminate the issue of hallucinations, or when a chatbot makes up information, by relying on formal verification, a mathematical method used to guarantee an AI system functions correctly. 'We can ensure that every piece of output and every step in our model's reasoning is verifiably correct,' Tenev said. 'That is just a very different approach to building AI models that I think is going to be the approach that dominates in the future.' Harmonic previously raised $75 million from Sequoia and Index. Its new funding round gives the company a valuation just under the $1 billion threshold that would make it a 'unicorn.' Tenev said that was an intentional choice. 'You never want to take the highest offer,' said Tenev, who raised billions in funding for Robinhood before the stock-trading service's 2021 initial public offering. 'Optimizing for valuation is never the right choice.' Clark writes for Bloomberg.
Yahoo
08-07-2025
- Business
- Yahoo
Robinhood's Tenev confirms EU probe, reaffirms stock tokens on Bloomberg TV
-- Robinhood Markets Inc (NASDAQ:HOOD) CEO Vlad Tenev on Tuesday defended the company's foray into tokenized equity offerings, describing it as a transformative step for capital markets and underscoring efforts to satisfy European regulators. Speaking to Bloomberg TV, Tenev outlined the mechanics of new derivative-based stock tokens that provide exposure to over 200 publicly listed companies in the EU, and pointed to broader ambitions to unlock retail access to private firms in the U.S. and UK. The products are now live across the European Union under Lithuania's regulatory purview, where officials have opened an inquiry into the structure and compliance footing of the offering. 'I think they have some questions. You know, they want to make sure that everything is proper, because it's a new, innovative offering, and we're confident,' Tenev said, noting that Robinhood is committed to transparency and welcomes regulatory scrutiny. The stock tokens are legally classified as derivatives under the EU's MiFID and MiCA frameworks and are not direct representations of equity ownership. Instead, they are backed by traditional custody arrangements, typically a U.S. broker, that facilitate token issuance and redemption through a mint-and-burn mechanism designed to mirror price exposure to the underlying asset. Valuation of the tokens tied to private companies remains a more complex issue, hinging on negotiated secondary market trades often limited to institutional or high net worth participants. 'There is a secondary market for private assets... what this would do is it would unlock that, so it's not just the high net worth institutional market, but it unlocks it to retail exposure as well,' Tenev explained, portraying the move as a democratization of capital access. Robinhood debuted the effort with a promotional giveaway, $1 million worth of OpenAI token exposure and $500,000 of SpaceX, to 'test the waters.' Since the pilot, the firm has received a wave of inbound interest from private companies seeking similar exposure. 'I've had a deluge of inquiries private companies that actually want to access retail, to have their shares tokenized,' Tenev said. Despite momentum in the EU, Robinhood's crypto-token equity products are not yet available in the U.K. or U.S., markets with more entrenched regulatory systems and higher institutional inertia. However, talks with relevant authorities are underway, and Tenev expressed optimism about U.S. adoption in particular. 'Chairman Atkins of the SEC gave an interview about tokenization. He called it a great innovation, and we agree with that.' Tenev stopped short of providing a specific launch timeline for the U.K. or U.S., cautioning that entrenched legacy infrastructure may drag on adoption. 'We haven't even fully moved off of mainframe in the U.S., so I think it could take time,' he said, though he maintains that Robinhood's recent product push could help accelerate regulatory openness to this model. The crypto-powered instruments aim to address liquidity frictions and limited accessibility that have long plagued retail market participants, especially where private equity is concerned. By combining digital rails with traditional financial safeguards, Robinhood is betting that tokenized equities could become the next frontier in hybrid asset innovation. Related articles Robinhood's Tenev confirms EU probe, reaffirms stock tokens on Bloomberg TV EU nears US trade deal with Airbus exemptions, Ferrari left out - Bloomberg Morgan Stanley cuts Ciena as profit lags AI revenue gains Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Top Fintech Stocks That are Transforming the Future of Finance
An updated edition of the April 15, 2025 or financial technology, is revolutionizing how individuals and businesses manage money by offering faster, more affordable and user-friendly financial services. From digital payments and mobile banking to artificial intelligence (AI)-driven insurance platforms, robo-advisors and blockchain solutions, fintech is redefining traditional finance through innovation and digital transformation is particularly resonating with Millennials and Gen Z, who are driving widespread adoption thanks to fintech's mobile-first, on-demand convenience. Routine financial activities like transferring money, making payments, investing and getting financial advice can now be done effortlessly via smartphones or laptops. As a result, the global fintech market is expanding rapidly. The market, valued at $340.10 billion in 2024, is projected to surpass $1.12 trillion by 2032 at a CAGR of 16.2% (Fortune Business Insights report), highlighting its potential for long-term growth and truly sets fintech apart is its fusion of finance with cutting-edge technologies such as AI, machine learning and blockchain. These tools are reshaping how banks, lenders and investment platforms operate by enhancing security, personalizing user experiences and driving down consumer preferences continue to shift toward digital solutions, both startups and established financial institutions are investing heavily in fintech to stay competitive. For investors, this presents a compelling opportunity to tap into a dynamic, high-growth sector poised to redefine the global financial ecosystem. Hence, stocks like Robinhood Markets Inc. HOOD, Nu Holdings Ltd. NU and SoFi Technologies, Inc. SOFI are gaining traction. Our Fintech Screen will help you identify the right stocks now to ride the wave of this trillion-dollar revolution. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity. Robinhood, founded in 2013 by Vlad Tenev and Baiju Bhatt, democratized finance by providing commission-free stock trading. Launched in 2015, its app quickly gained popularity among younger investors, disrupting traditional brokerage firms. The platform became a major force in retail investing, particularly during the pandemic, when a surge in retail trading fueled its rapid has evolved from a brokerage firm mainly trading in digital assets to a more mature and diversified entity, striving to widen its market and reach. The company operates in multiple financial sectors, offering stock and ETF trading, options trading, cryptocurrency transactions, retirement accounts and cash management services. The company has also expanded into prediction markets and launched the Robinhood Wallet for self-custodial crypto storage. These diverse offerings make it a key player in the fintech industry, attracting millions of users with its user-friendly and innovative approach. The company intends to become a one-stop shop for building generational plans to expand internationally, particularly in Europe and Asia, while introducing services for institutional investors. The company, carrying a Zacks Rank #3 (Hold), is developing AI-powered investment tools and exploring Decentralized Finance (DeFi) integration to enhance its offerings. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks these initiatives, the company will continue to reshape the financial industry by making investing more accessible and technologically advanced. The Zacks Consensus Estimate for HOOD's 2025 sales and EPS implies year-over-year growth of 22.3% and 12.8%, Holdings is reshaping traditional finance in Latin America by targeting underserved and digitally native consumers with a broad suite of app-based services across lending, banking and investing. As of March 31, 2025, the company had amassed a staggering 118.6 million customers, a clear signal that its influence on the region's financial future is deepening a digital-first, highly scalable model, Nu Holdings has reduced operational costs while boosting efficiency and accessibility. This strategy not only disrupts legacy banking structures but also promotes financial inclusion in markets long underserved by traditional players. Its flagship platform, NuBank, has become one of the most trusted and recognized financial brands in Latin America. Ongoing digital adoption across the region is expected to further accelerate its growth diversified revenue streams — lending, interchange fees and marketplace services — offer both resilience and scalability. Credit cards and personal loans remain strong contributors, supporting the platform's monetization and customer engagement a space where many fintechs prioritize rapid growth over profitability, Nu Holdings stands out for balancing scale with financial discipline. With continued innovation, disciplined execution and a growing footprint across emerging economies, this Zacks Rank #3 firm is not just expanding its reach, it's establishing itself as a long-term leader in the global digital finance Zacks Consensus Estimate for NU's 2025 sales and EPS implies year-over-year growth of 28.5% and 20%, respectively. SoFi is redefining traditional finance through its app-based digital banking platform, offering a wide array of services, including lending, banking, investing and insurance. In 2024, the company surpassed 10 million members, a testament to its growing consumer appeal and the strength of its all-in-one financial ecosystem.A major catalyst for SoFi's growth is Galileo, its B2B financial services platform, which powers seamless payment and lending integrations for other fintechs and financial institutions. Galileo not only diversifies SoFi's revenue streams but also cements its position in the rapidly expanding embedded finance market. Its adoption by a growing roster of high-profile clients enhances the company's credibility and market land-and-expand strategy remains a core strength. By offering a broad spectrum of financial products, the company attracts new users and creates a strong cross-selling dynamic. This integrated model encourages deeper customer engagement while incentivizing partners to embed more of their offerings within SoFi's ecosystem, ultimately driving higher lifetime value per a strong first-mover advantage in U.S. fintech and an aggressive growth mindset, this Zacks Rank#3 company is well-positioned for continued earnings expansion. Its increasing cross-sell capabilities and platform scalability point to a compelling long-term outlook in a fast-evolving digital finance landscape. The Zacks Consensus Estimate for SOFI's 2025 sales and EPS implies year-over-year growth of 26.2% and 80%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nu Holdings Ltd. (NU) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
06-06-2025
- Business
- Yahoo
Robinhood Extends Rally as Speculation Over S&P 500 Inclusion Grows
(Bloomberg) -- Robinhood Markets Inc. shares extended gains into a sixth straight day as investors speculate that the online brokerage could become the latest firm to earn a coveted spot in the S&P 500 Index. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Trump Said He Fired the National Portrait Gallery Director. She's Still There. Wall Street firms including Bank of America Corp. and Barclays Plc have called the company a top candidate to join the benchmark, a distinction that would spur passive funds to snap up its shares. The rebalancing is set to be announced after the close of regular trading Friday. Robinhood shares rose 3.3% in the session, bringing their gain to 17% over six trading days. 'It does seem like the speculation about the stock being included in today's S&P 500 announcement is having the bigger impact,' said Matt Maley, chief market strategist at Miller Tabak + Co. 'With so much money invested in index funds and index ETFs today, the stocks involved will rally no matter what.' Ares Management Corp., AppLovin Corp., and Tradeweb Markets Inc. are among other companies that analysts have flagged as possible additions. Barclays analyst Benjamin Budish said the S&P 500 has added an average of 1.5 new companies in the June quarter, either through additions or promotions from its other indexes. Fellow new-finance player Coinbase Global Inc. received a dramatic boost when its inclusion was announced last month. The stock jumped 24% in the next trading session on its way to a 34% weekly gain. Robinhood, meanwhile, has jumped more than 100% this year and, on Tuesday, closed at a record for the first time since 2021. 'Stocks selected for index inclusion typically experience 7%+ gains into the first day of trading,' Budish wrote in a note to clients. 'However, the stocks appear to sell off by about 1.4% on average in the first week following index inclusion, and are down about 1% in the following 4 weeks.' Other stocks linked to cryptocurrencies also advanced Friday as US labor data boosted appetite for risk and lifted digital tokens. Coinbase rose 2.9%, while Bitcoin was trading above $104,000. --With assistance from Monique Mulima. (Updates shares throughout, Bitcoin price in final paragraph.) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Robinhood Markets Inc. (HOOD): Jim Cramer Likes It — But Warns of 15–20% Downside Before It Finds Bottom
We recently published a list of . In this article, we are going to take a look at where Robinhood Markets Inc. (NASDAQ:HOOD) stands against other stocks that Jim Cramer recently discussed. During the most recent episode of Mad Money, Jim Cramer revisited the recent turbulence in artificial intelligence stocks, three months after the emergence of DeepSeek, a Chinese AI firm that initially rattled markets. He noted that despite the broad pullback in the sector, many of the fears triggered by DeepSeek's debut have not materialized, which has led to a reconsideration of the panic that followed. 'Three months ago, January 23rd is a day that will live in artificial intelligence infamy. That's when we learned that a Chinese firm called DeepSeek had figured out a way to train high quality generative AI models using far less hardware. They claim their hardware costs were around $6 million versus $80 to $100 million for their enormous American competitors.' READ ALSO: and . The announcement sent shockwaves through the market. Cramer recalled how NVIDIA saw its stock fall sharply over just two trading sessions. The market reaction spread quickly beyond and hit other companies tied to data center infrastructure, which eventually pulled down the broader Nasdaq. However, Cramer noted that the company then revealed plans to build $500 billion worth of AI infrastructure in the United States over the next four years. Cramer noted that initially, it seemed to signal a renewed sense of stability. But soon after, the administration imposed a ban on selling AI chips to China, which forced the GPU kingpin to write down $5.5 billion tied to that entire initiative. Even so, Cramer emphasized that the company's core business remained strong. 'We understand that they're basically sold out for the year, even as they can only sell their best stuff in the United States and the 18 friendly countries.' Cramer attributed the export restrictions to a policy from former President Biden, one that President Trump has not reversed. Despite the geopolitical constraints, Cramer stressed that demand for the company's technology is still overwhelming. He argued that the stock never should have experienced such a steep drop in the first place. He added: 'Even with the trade war, the AI infrastructure theme seems totally back on track. In fact, it never left the track to begin with.' For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money on April 30, 2024. We then calculated their performance from April 30th, 2024, market close to April 29th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey's Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them. Please note that this article mentions Jim Cramer's previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A successful business person confidently managing their finances on a mobile a caller asked Cramer about Robinhood Markets Inc. (NASDAQ:HOOD), the popular trading platform was coming off a sharp rally driven by short covering, prompting a cautious response from the host of Mad Money. Here's what he replied with: 'Robinhood had this gigantic move up and it is now pulling back and I don't think the pullback is finished. The rally occurred in large part because of a big short position. I think we've got to wait and see. I would not wade in. I would not go either way on the stock right now.' The company has been one of the best performers over the past year. It has risen by 184.72% since that episode aired. Cramer remains a fan of Robinhood Markets Inc. (NASDAQ:HOOD). Here's what he said to a caller on April 4: 'Okay, I like Robinhood very much, but the problem is that when it had this big spike where things looked like we're going to have a president… that was a little more pro markets, I would own the stock. I would not buy it right here. I think the stock has another 15 to 20% downside before we really find exactly where it can be bottoming.' Overall, HOOD ranks 11th on our list of stocks that Jim Cramer recently discussed. While we acknowledge the potential of HOOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
