Robinhood stock is suddenly seeing a dull few days, even as news surrounding expanding beyond crypto and receiving a key role in Trump Accounts comes in.
- Robinhood stock hit an all-time high of $152.46 in October last year but has since fallen 35%.
- Last week, Bloomberg News reported that the U.S. federal government was looking to give Robinhood a key role in overseeing the new “Trump accounts.”
- Several reports also emerged that Robinhood was seeking a share of the SpaceX IPO, in which the company plans to sell stock directly to retail investors.
Robinhood stock has fallen below the $100 mark to close down for its fourth straight session of losses by declining 2% to $99.48, hitting a nearly seven-month low on Friday, even as a catalyst of news failed to spur enthusiasm among retail traders and investors over the past few weeks.
Several factors, including receiving a key role for Trump accounts, SpaceX IPO offering, expanding beyond, and CEO Vlad Tenev touting ways to make trading easier after the 2021 crisis, did not lift investor sentiment.
Robinhood And Trump Accounts
Last week, Bloomberg News reported that the U.S. federal government was considering giving Robinhood a key role in overseeing the new “Trump accounts,” which are being created for millions of children.
The report noted that Robinhood has begun internal preparations in case it is selected as a trustee for the project. Bloomberg reported that customers could eventually move their funds to a different provider if they prefer, but the program is expected to bring Robinhood billions of dollars in new assets to manage.
The SpaceX Angle
Several reports also emerged that Robinhood was seeking a share of the SpaceX IPO, in which the company plans to sell stock directly to retail investors. Bloomberg reported that Robinhood would likely offer the shares through its IPO Access platform, which lets users buy stock at the IPO price before it trades on the open market.
A SpaceX initial public offering has been the talk of the town since late last year, with Elon Musk’s rocket company targeting a valuation of around $1.5 trillion. Over the past week, several reports said that SpaceX was likely targeting a merger with xAI or Tesla.
Other Developments
In the past two months, the stock has seen gains from its decision to expand internationally, including Indonesia, looking into prediction markets, and also from its announcement about testing full-service tax filing and real estate planning on its platform.
Robinhood CEO Vlad Tenev said last week that five years ago, when the online brokerage went “from a hero to a villain” almost overnight in the eyes of retail investors after it halted trading in several stocks — including GameStop — during the “meme frenzy.”
He then added that a new approach in the form of tokenization was needed, as well as more regulatory support through the Digital Asset Market Clarity Act of 2025, or the CLARITY Act, which would give the Commodity Futures Trading Commission a central role in regulating digital commodities and related intermediaries.
What Is Retail Thinking?
Retail sentiment on Robinhood remained unchanged in the ‘bullish’ territory, compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. The stock currently has nearly 92,000 followers on Stocktwits.
A user on Stocktwits noted that Robinhood stock could trade around $64. This implied a 68% fall from the all-time high of October.
Another user said that the stock was seeing a “nasty correction” and looks a bit vulnerable to hit the $95 level.
Shares of Robinhood have gained nearly 92% in the last 12 months.
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