Robinhood Markets Inc. (NASDAQ:HOOD) announced a $2 million donation to President-elect Donald Trump's inaugural fund on Tuesday, marking the largest publically announced contribution among major tech firms.
What Happened: The donation, double the amount pledged by Meta Platforms Inc., Amazon.com Inc., and OpenAI, comes amid broader tech sector alignment with Trump's proposed regulatory approach.
Robinhood CEO Vlad Tenev criticized President Joe Biden's administration's "heavy-handed" regulatory stance, particularly regarding cryptocurrency and artificial intelligence. "There's been open warfare against the cryptocurrency industry in America and a very anti-A.I. posture," Tenev told FOX Business.
The announcement follows significant developments in tech-political relations, including SoftBank Group Corp.'s commitment to invest $100 billion in U.S. technology over the next four years. SoftBank CEO Masayoshi Son called Trump "a double down president" while announcing the investment at Mar-a-Lago.
Robinhood reported a 500% month-over-month increase in crypto trading from October to November, highlighting the platform's growth amid regulatory uncertainty. Tenev emphasized the need for "sensible regulation" to maintain U.S. leadership in financial innovation.
Why It Matters: The financial platform's stance aligns with recent moves by other tech leaders. Apple Inc. CEO Tim Cook met with Trump at Mar-a-Lago, while Meta's Mark Zuckerberg and Alphabet Inc.'s Sundar Pichai have also engaged with the president-elect.
Tesla Inc. CEO Elon Musk, set to co-lead the Department of Government Efficiency in Trump's administration, has been a vocal supporter of regulatory reform that could benefit technology companies.
"The U.S. should embrace cryptocurrency and lead in this space, much like it does in artificial intelligence," Tenev added, emphasizing the platform's commitment to democratizing finance while maintaining regulatory compliance.
Price Action: Robinhood's stock closed at $41.63 on Tuesday, down 3.63% for the day. In after-hours trading, the stock dipped slightly. Year-to-date, the stock has surged by 236.54%.
The stock is trading near its 52-week high of $43.83, well above its 52-week low of $10.38. The company's price-to-earnings ratio currently stands at 71.36, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
