CEO Vlad Tenev Says ‘Perception Lags Reality’ On Robinhood’s Crypto Identity – HOOD Stock Set To Erase April Gains

• Robinhood CEO Vlad Tenev said that the company is planning its investments to diversify the platform beyond cryptocurrency and equities trading.
• He explained that the uptick in expenditure due to the initiation of Trump Accounts would broaden Robinhood’s user base and revenue streams further.
• HOOD’s stock was among the top trending tickers on Stocktwits at the time of writing, with retail sentiment improving to ‘bullish’ from ‘neutral’ over the past day.

Robinhood Markets (HOOD) CEO Vlad Tenev reportedly said on Wednesday that market perception is “lagging reality,” with many investors continuing to view the company primarily through a cryptocurrency lens.

“Perception can sometimes lag reality,” he said in an interview with CNBC. “If you look at the overall financial profile of the business, we've got 11 business lines that generate $100 million or more in annual revenue, and then a couple that are getting very close.”

HOOD’s stock took a dive of more than 13.5% in morning trade, wiping out April gains if the losses hold till market close. The shares were among the top trending tickers on Stocktwits at the time of writing. Retail sentiment on the platform around the stock improved to ‘bullish’ from ‘neutral’ over the past day, and chatter jumped to ‘extremely high’ from ‘neutral’ levels. 

Why Is HOOD Stock Falling Today?

The tumble came after the company reported adjusted earnings of $0.47 per share for the first quarter (Q1) after market close on Tuesday, missing Wall Street’s estimate of $0.43, according to Koyfin data. Revenue came in at $1.07 billion, also below the consensus estimate of $1.13 billion. 

Cryptocurrency revenue, which accounts for just 13% of the company’s overall revenue, came in at $134 million, down 47% from the same quarter last year. In the interview, Tenev said that take rates saw a “little bit of compression” but said it was mostly due to the macroeconomic environment and the impact from the U.S.-Iran war.

He added Robinhood is doubling down on investments to help build a diversified company, not one known only for its cryptocurrency and options trading. This includes the additional expenditure to help set up Trump Accounts. 

“[This] will put Robinhood in front of upwards of 60 million children who are eligible for these accounts,” Tenev said. “Over time, that investment is gonna be very, very powerful, not just for the business, but also for the next generation.”

Robinhood raised its 2026 combined adjusted operating expense and share-based compensation guidance to between $2.7 billion and $2.825 billion, above prior guidance and consensus. “Our work for Trump accounts is contracted on a cost plus basis with a small margin, so we expect revenues to exceed costs,” the company said.

Wall Street Takes Cautious Stance On HOOD’s Stock

Barclays trimmed its price target on HOOD’s stock to $82 from $89, and kept an ‘Overweight’ rating on the shares after the Q1 earnings miss, according to TheFly. Keefe Bruyette lowered its target to $65 from $75 and kept a ‘Market Perform’ rating on the shares. 

Bernstein, on the other hand, did not change its price target of $130, which implies an upside of 58% from Tuesday’s close, and said Robinhood’s shares already bottomed in the first quarter. 

After today’s dip, HOOD’s stock has fallen nearly 40% this year but is holding onto gains of over 45% in the last 12 months.

Read also: HOOD Stock Falls Pre-Market After Price Target Cuts On Q1 Miss – Bernstein Says Shares Already Bottomed

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