Robinhood takes on Reddit and X with new social media platform
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Screenshot: Robinhood
Robinhood is getting into social media with the launch of Robinhood Social, allowing users to post their trades, takes and commentary while following other users as well as avatars mirroring the trades of politicians and executives.
Why it matters: This could be serious competition for the meme stock Reddit crowd.
What they're saying: "Robinhood is no longer just where you trade - it's your financial superapp," Robinhood CEO Vlad Tenev said in a statement about the new features announced at the company's annual HOOD summit.
- The in-app social platform Robinhood Social will roll out to select customers early next year with a wider release to follow.
- Other updates from the event include an AI-powered chart-building tool, short-selling capabilities, overnight index options and trading for more than 40 CME futures contracts.
Zoom in: I got to preview Robinhood Social at the company's Manhattan headquarters.
- It looks like your X and Venmo feeds combined.
- For a user to have the ability to post, they have to include a trade. Then, they can share their thoughts alongside that transaction proof.
- That's by design, according to the product team.
The goal was verification. Users may post trade ideas on Reddit or talk up their own portfolios, but there's no way to know if people are telling the truth.
- With Robinhood Social, that verification is built in because you can only post your own trades.
- Each user profile includes your year-to-date return as well.
Zoom out: This could be another way for "finfluencers" and "thought leaders" in the world of Wall Street to grow their followings.
- The financial Twitter crowd (FinTwit) already has its own army of technicians, portfolio managers and analysts who charge for subscriptions and newsletters.
- Robinhood Social could be another revenue-building opportunity for them.
Yes, but: While the product folks I spoke with said that kind of creator monetization is possible down the line, right now they see more opportunity in using the app for investor relations.
- A future Robinhood earnings call will likely be livestreamed on the app, for example.
- Big retail investor stock darlings, like Nvidia, could also see their results streamed on the platform as part of a community-building effort.
What we're watching: How much this impacts the retail crowd's ability to rally behind different trade ideas.
- If meme stocks can take off with no verification on Reddit, this platform could supercharge that kind of activity.
Fun fact: The platform also had a slew of avatars tracking trades for everyone from tech billionaires to politicians.
- The platform has avatars that post those trades, which users can follow.
