Overview
- The SEC filing outlines Robinhood Ventures Fund I, a closed-end vehicle investing in at least five private AI firms with limited redemption options that can create liquidity risk.
- Robinhood reported Q3 revenue of $1.27 billion, up 100% year over year, with diluted EPS of $0.61 as transaction revenue rose 129% and crypto grew 300%.
- Management raised its 2025 expense outlook to build prediction markets and the Ventures effort, noting prediction markets volume has doubled every quarter since the 2024 election.
- Shares fell about 11% on November 6 after the earnings release, followed by analysts lifting price targets by an average of 13% to roughly $157.50.
- CEO Vlad Tenev told the Financial Times he is not worried about an AI bubble and said customers are buying into AI investments with awareness of the risks.