Robinhood Is Building the Amazon Prime of Finance w/ Sam Andrew

**Sam Andrew** (0:00)
The cadence at which Robinhood develops and gets into market new products is absolutely best in class. Every year, they're launching a handful plus of products, some of which really hit, others less so, but that's fine. The point is, is they're always like on the bleeding edge of innovation.
And that innovation is what led to now a dozen plus business lines of 100 plus million revenue.

**John Gillen** (0:26)
The Robinhood chain is live and the race to build the super app of finances is on. But can Robinhood win? What is their strategy? Who are their competitors? And what do you need to know about all of this? Hello and welcome to The Milk Road Show, the podcast that knows that the real financial super apps were the old Bitcoin faucets that used to just distribute free Bitcoin to anyone who wanted them. Yes, it's a real thing. Look it up. I'm your host, John Gillen. Today is Tuesday, July 7th. And today we are joined by Samuel Andrew. Sam is a crypto and markets analyst at North Island Ventures, he focuses on equity research and investments in digital assets and related technologies. Previously a hedge fund analyst at Blue Mountain Capital. Sam is going to break down a ton of alpha today and give us the latest on Robinhood. So if that all sounds good to you, make sure you like and subscribe, share this episode with somebody who's going to enjoy it. Before we jump in, if you want to see exactly what our analysts at Milk Road PRO are buying, selling and researching, you can get all of that info in real time. If you join Milk Road PRO 33% off this week only, check out the link in the description for more on that.
Today's episode is brought to you by BitGet, stocks 2 with real liquidity, real dividends and Securitize, the regulated rails for tokenization. Without further ado, welcome back to The Milk Road Show. Sam, how are you, sir?

**Sam Andrew** (1:36)
Hey, John, I'm doing great. Thanks for having me back.

**John Gillen** (1:39)
I'm excited to talk to you. I think a lot of people are focused on Robinhood right now, with the recent announcements from them. I wanted to start with a report that you published, you co-authored this with Artemis on Robinhood. It's called, Why Robinhood is Positioned to be the Winner of Retail Finance. And I'd love if you could start us out with a high level outlook on this report and just give us the thesis on Robinhood here.

**Sam Andrew** (1:59)
Sure, John, I'll do that. Quickly, I need to read you just a two sentence disclaimer, which will be very evident that I'm reading it. And then we can get right into it. So North Island Ventures is a registered investment advisor. Anything I say on this podcast is for informational purposes only. It's not investment advice or solicitation. Accounts advised by North Island Ventures hold positions in Robinhood, and we may trade in Robinhood stock at any time. And obviously, investment investing involves its own risks, and everyone should be doing their own research.
OK, now we got that out of the way.
The Robinhood thesis.

**John Gillen** (2:37)
All right, I was going to say, anybody who has to read their own disclaimer, you know, is legit. So this is already a good sign. I'm already bullish on this conversation. So, yeah, please continue Robinhood.

**Sam Andrew** (2:46)
OK, I'll walk us through very high level the thesis, and then there's probably different attributes of that. We can talk in a little bit more detail. So, simplistically, Robinhood is developing a financial super app designed for all your financial needs. And with that comes a much higher monetization per user. And we can talk through the kind of drastically different monetization from Robinhood and its competitors.
The second thing that's happening with Robinhood that's part of the thesis is that it's evolving from this highly cyclical trading oriented business to a secular growth story. And that secular growth comes from a whole bunch of different product launches that Robinhood has had, as well as what's estimated to be an $80 trillion general wealth transfer from boomers to younger generations. And with that transition, Robinhood evolves into a much higher quality business.
And then tactically right now, the third thing to point to is that there's a sequence of things happening in the second half of this year and actually have started to play out already, that should drive a lot more engagement toward Robinhood, particularly prediction markets. They've launched their vertically integrated prediction markets. We also have a really strong calendar for prediction markets. We've got the World Cup happening right now. We've got the midterms coming up. Then we'll get a full NFL season. And then you also have these like mega IPOs, right? SpaceX just happened. Anthropic is likely on the way. And those things are events that catalyze more customer engagement that should help really accelerate growth for Robinhood in the second half this year and maybe into next year.