Double Down or Take Profits on $HOOD

**Dave** (0:03)
Robinhood stock hit a new all-time high yesterday, $100 a share. They announced this week that they're expanding cryptos trading to all of the EU countries. The big headline is that they're going to start tokenizing US stocks. So for the first time ever, US stocks can be traded in Europe as a new type of crypto on their newly announced Robinhood blockchain. They say that they can actually tokenize any asset from real estate to private companies, which they did. And they gave away both SpaceX and OpenAI in token form to Robinhood account holders in the EU. This week's announcement follows their last event a few months ago, where they announced that they're launching banking services in the US. And of course, they also have their own prediction markets. They do futures. It's all a part of their overall master plan to ultimately be a part of every financial transaction that you make. So clearly, the market likes what it sees so far. The stock is near all-time highs. But is it too high? Is this the top? The stock price has tripled in the last three months. They're now worth about half of what the big dog Schwab is with their higher value customers and massive assets under management. So today on Dumb Money, we're going to decide if now is the time for us to take profits in Robinhood, or maybe, just maybe, we should double down.

**Chris** (1:13)
This is Dumb Money Live.

**Dave** (1:18)
Hey there, Dave here, along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder to smash the like button. The almighty algorithm needs all the help it can get as we head into a long 4th of July weekend. It just takes a second. It's quick. It's easy. It's free. Find a like button somewhere on the interface you're watching. Smash away. Chris, loved the outfit. Before everyone heads out for the 4th. Look at that. That is amazing. Had I known, I would have worn my 4th of July costume as well.

**Chris** (1:53)
Is there a better, Dave, Jordan, is there a better stock to be talking about for the 4th of July episode than Robinhood? Is there a better representation of American ingenuity, of American ambition, of American perseverance, of American creativity, of American aggressiveness?

**Dave** (2:18)
Founder. But it's a stock that's become one of my biggest holdings. And Chris, just a few days ago, I saw that you posted on X that Robinhood has become your top holding.

**Chris** (2:30)
You know what? It grew into becoming my top holding.

**Dave** (2:34)
It's one of those. It's one of those. Yes. That just, you bought what you thought you needed, and it just kept going up. It just kept going. The last three months, any stock that triples, that you hold a lot of, is going to end up being your top holding.

**Chris** (2:46)
You remember, Robinhood was, it was floating between $17 and $26 a share. And we would regularly talk about it someday being the biggest financial institution in the world, which at the time sounded clinically insane. Yeah. Okay. And it sounds a lot less insane today than it did just months ago, when we were talking about it being the largest financial institution in the world. Now people, I think, are starting to see what we have seen for a long time. And those of you all that haven't been following us for 10 years, you might not remember the fact that we called every single series, I think it was series seed shareholder of Robinhood. This is many years before it went public, because we had come to the conclusion that Robinhood was going to be a very big deal. We actually called them with one of our other partners and asked if they would sell us some of their shares privately. Every single one of them, including, I think it was Snoop Dogg.

**Dave** (3:59)
Yeah, we found Snoop Dogg shares that we were trying to get.

**Chris** (4:03)
They all said no. Everyone said no. There was one person left. And it was a guy that owned a winery outside of San Francisco. Our business partner, Smoot, called him and he said, I'll sell you a million dollars of my Robinhood.
And so the four of us split that million dollar allocation. Now, it still had to be approved by the general council. So we had the entire deal done and everything was ready to go. And we sent all the paperwork to the Robinhood general council who never signed the deal. Two and a half months later, we didn't know what to do. We kept pinging and pinging and he just wouldn't respond. So I had met Vlod many, many years earlier at Social, no, Stockpily, Howard Linsen, Stockpalooza in San Diego, when Vlod was originally pitching Robinhood before it was even a real company. And at the time, Howard Linsen, I think was the first check into Robinhood. And I was invested in the fund. And I went up to Howard and said, this is the dumbest thing you've ever done. You're going to lose our money with this one. Because I heard Vlod speak, and I was like, this guy is out of his mind, and this is never going to work. Like, just, I was a non-believer, non-believer early on, OK?