Regulation catches up to digital assets

**SPEAKER_1** (0:01)
This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein.

**Justin Klein** (0:16)
Good afternoon, fellow investors. Welcome back to another edition of InvestTalk. This is our Monday, August 24th, 2026 edition. I'm excited for this week with you. There's a lot to discuss in this market with the OPEX week behind us and mostly earnings behind us, but we do have one big thing this week, and that is NVIDIA's earnings, such a bellwether now of the tech space and the AI trade, and whether or not the market will react positively or not, we'll probably send a broader signal. So that's going to be big. And then we have Jackson Hole from the Fed coming up here later in the week.
What potential changes are coming out of the Fed that can move asset prices, the dollar, interest rates, gold and silver, other commodities, et cetera.
And then of course, the geopolitical volatility that we are just getting used to now. You know, the straight-up harm use has been closed for six months, roughly, now. And there's no real signs it's going to change in a meaningful way. So what does that mean for energy, energy costs, food costs, inflation metrics, all of that? So we're going to talk about all this and much, much more for the next hour. Most importantly will be your live calls, 888-99-CHART is how to get through and ask your question on today's show. And then I'll bring some data and perspective, develop over 25 years of investment experience so that you can make better decisions with your money. That's what this show is about. And in just a bit, we'll talk about today's Mark Performance and run down the show topics. But first, let's tackle this call question now.

**SPEAKER_3** (2:11)
Hi guys, great show. I was calling about Robinhood. I just wanted to see what you guys thought of it. If it's time to get out of it, take some profits or you think it's going to go a little higher. I'll be listening on the show. Thank you.

**Justin Klein** (2:24)
Looking at Robinhood. Hood is the symbol, H-O-O-D. A name that's been up and down throughout the years. But as of late, has been on a nice little rally despite crypto meandering. Robinhood has done okay.
It's rallied from a low around 65 in, what was that, April. Now we're at 103, but it's still way down from its high back in the fall when it was at 150 and change. This year earnings supposed to be $1.09, $2.80 next year, but it's still $103 stock.
The problem here to me is it's very reliant on the average investor.
Is they're going to be very exposed to the tech trade.
The tech trade has been, especially since June, has been struggling.
Not coincidentally, so has Robinhood.
I don't love that. I don't love that correlation. I don't love the fickleness of their user base.
Free-to-all investors, those that use the app and think it's a big game, because they throw confetti every time you buy a stock, for example, their free cash flow still remains negative, very negative, about 7.8 billion, $93 billion market cap. So they continue to burn more and more capital. And that's to me, the biggest issue is just that negative free cash flow situation and the valuation is not exactly cheap either. Enterprise value, even looking forward, is 43 So yes, I would take profits on Robinhood if you're up on it. I think this little rally recently is a good exit point. Now, we had a wonderful show on Friday. I looked into the story about financial innovation and how it's now a Fed problem. We broke down what tokenized money and instant payments could mean for the plumbing of the financial system, how it impacts banks, businesses, and much, much more. And we answered a listener question on Sandisk. And if you happen to miss it, go check it out. The best way to get every show is to follow InvestTalk wherever you get your podcasts. Now, we have a lot of ground to cover over the next 45 minutes or so. And time permitting, we'll get to all of it. Our main focus point is about regulation. It's catching up to the digital asset world. The Senate has delayed work on the Clarity Act. But what is it trying to do in the end? And if it gets passed, what real impact will it have on the sector as a whole? We have other topics on the docket as well. One is in regards to private credit. And there's a way to look into the private credit industry.