Two Million Thanks

Robinhood reaches two million users and secures Series C financing

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At Robinhood, we’re dedicated to providing everyone with access to America’s financial system. To help further this mission, we recently raised $110 million in Series C financing led by DST Global, valuing the company at $1.3 billion. Existing investors NEA, Index Ventures, and Ribbit Capital, as well as new investors Thrive Capital and Greenoaks Capital also participated in the round, bringing our total funding to date to $176 million.

Since our public launch in 2015, Robinhood quickly became the fastest growing brokerage ever.  Our two million users have transacted over $50 billion and saved nearly half a billion dollars in commission fees. Robinhood Gold, our margin and extended hours service, is also experiencing significant growth, with signups surging 17% month over month. 

We’ll use this capital to accelerate the expansion of our products and services. We’re working on a few exciting releases, so stay tuned for updates!

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Buy Gun Stocks? Vote for Trump.

How Robinhood trading data can predict elections

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In 2016, everyone from political experts to a psychic monkey attempted to predict whether the White House would go red or blue. As results were counted, many realized just how wrong most of those predictions and polls were, which got our wheels turning. Could trading patterns predict the winning candidate based on which symbols were traded prior to the election? Our data team set out to find the answer.

Fortunately, there are one million Robinhood investors spread around the country - with users in all 50 states - and as it turns out, Robinhood investors from 70% of all U.S. counties placed trades in the week prior to the election. This massive dataset provided us with an answer. We determined that pre-election trading patterns in a given county could accurately predict whether they went blue or red 86.3% of the time. (See map above). 

Not to brag, but that’s a better success rate than Nate Silver. 

By looking at the top 12 stocks bought in red and blue counties, we started to see some interesting patterns: 

Portfolios are partisan
Looking closer at which stocks were bought and sold, it’s clear Americans invest based on their own political views. For example, Republican counties were far more likely to purchase Smith and Wesson stock than Democratic counties, a nod to traditional party-line positions around gun control. 

Investors listened to their candidate 
Throughout his campaign, Donald Trump promised to bring manufacturing jobs back to the U.S, potentially uplifting Detroit’s automobile industry and hurting technology companies such as Apple, which primarily manufactures its products overseas. Hopeful Trump supporters invested in Ford while Clinton supporters were far more likely to invest in Apple. Clinton’s supporters also invested in green energy stocks such as Tesla and First Solar. 

Republicans were pessimistic, Democrats were optimistic
In investigating the data, we saw evidence of how voters really felt about how the economy and stock market would play out under their preferred candidates’ policies. Democrats were betting on the market, buying Standard & Poor (SPY) believing its prices would rise in the future. In contrast, Trump voters anticipated a decrease in prices, shorting the market with Daily Gold Miners Bear as the second-most traded stock. 

The below map references the actual election results from 2016 as compared to the prediction from Robinhood user behavior. Head over to our Engineering Blog for insight into our methodology. Check the chart at the bottom to see the top stocks in red and blue counties in the week leading up to the election.

Disclosure: Data was anonymized and aggregated at the county level.

Earnings on Robinhood

Robinhood adds advanced earnings information

Today, we released a new experience around earnings reports, giving you the information you need when earnings season strikes. 

View a list of upcoming earnings reports, glance at previous EPS hits or misses, check out expected EPS, and get timely alerts. You can even listen to earnings calls live or catch the call at a later time.

The update is available to a majority of Robinhood investors today and will be available to everyone in a few weeks.

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Robinhood's Best of 2016

As we forge ahead into 2017, we wanted to look back at our progress over the last year. It was an exciting one here at Robinhood, complete with new features, product launches and other big announcements, all aimed at providing our investors with the most advanced trading platform yet.  

A heartfelt thank you to our over one million Robinhood investors for making 2016 our biggest and best year yet. Here are some of our most meaningful moments:

Robinhood Instant
In February, after hearing requests from our investors, we introduced Robinhood Instant, speeding up bank transfers and providing immediate access to funds after selling stock.

Robinhood Gold
In September, we launched Robinhood Gold, a game-changing product for experienced investors offering extended hours trading, margin, and bigger instant deposits. 

Notifications and Wearables
We released many other new features in 2016, from customizable smart notifications and accessibility features to Apple watchOS 2 and Android Wear support.

Awards and Media Recognition
In 2016, we were named one of the Most Innovative Companies in the World by Fast Company, joined Jim Cramer on Mad Money, and won the 2016 Google Play Award for Best Use of Material Design.

Savings on Robinhood
By not taxing our investors with commission fees, Robinhood investors collectively saved over $200 million in fees since launching in 2015. One investor individually saved over $300,000 in 2016 alone. 

We can’t wait to show you what we have in store for 2017. Stay tuned!

The Robinhood Team

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Robinhood Gold

Introducing our most advanced trading platform ever

At Robinhood, the products we build start and finish with listening to our customers. That’s why today, we are excited to unveil Robinhood Gold, our most ambitious product since we first released free trading. Robinhood Gold is more than an advanced version of Robinhood – it is our vision for how the next generation of experienced investors will interact with the stock market. We believe that even complex tools like using leverage can be made focused, straightforward, and powerful. 

Robinhood Gold unlocks:

  • Pre & After Trading Hours: Once reserved for institutional investors, extended trading hours let you trade before the opening bell and well after the closing bell — an extra two and a half hours of access, every day. 
  • Additional Buying Power: Gold Buying Power is money that we lend to you to buy stocks, giving you the equivalent of a line of credit for the stock market. You get up to 2x your buying power so you can invest more, and keep any profits. More information on our Help Center.
  • Bigger Instant Deposits: Take advantage of Instant Reinvesting, which lets you access proceeds from a stock sale immediately, and Instant Deposits, which eliminates the three day wait period for funds to transfer from your bank into Robinhood. 

And we’ve built it in a uniquely Robinhood way, by carefully designing the details and cutting the confusing, bloated costs. Features like additional buying power and extended trading hours seamlessly extend the core features, and you pay a flat price just once every month. 

We will continue adding more features to both the core Robinhood experience and to Robinhood Gold. And of course, Robinhood will remain commission-free. This isn’t changing.

We sincerely hope you enjoy using Robinhood Gold as much as we enjoyed making it. We’ll be rolling out invitations to Robinhood Gold starting today, so stay tuned!

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Robinhood’s Investors Increasingly Introduce Financial Tools to Parents

Younger Investors Are Helping Their Parents Save Big

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We believe the U.S. stock market is a powerful tool for wealth creation and one that everyone should participate in. Years ago, our founders, Baiju and Vlad, set out to build a better way to invest, so it’s humbling to see customers recommending Robinhood every week. This organic growth is what led us to become the fastest-growing brokerage ever with one million users, over $6 billion in transactions, and $100 million in commissions saved.

After studying 2016 sharing analytics among our one million users, the Robinhood Data Team surfaced an interesting behavioral shift: younger generations are actually more likely to introduce Robinhood to older generations than the other way around. Traditionally, it’s been the reverse: parents would teach their children about saving and investing and introduce financial tools to get the job done. Not anymore.

The Robinhood Data Team reports 16% of all Robinhood referrals stem from one family member sharing their referral link with another family member, whether it be a parent, sibling, or cousin. More interestingly, 26% of these family referrals stem from a customer sharing their referral link with one of their parents. On the flip side, only 3% of these family referrals were from parents referring their kids. We were able to deduce all of this by looking at customers’ last names and ages.

It makes sense, too. As technology paves the way for automation and lower costs, companies are finally doing away with archaic interfaces, account minimums, and exorbitant fees. Today, there are simply better and more cost-effective ways to invest and track your finances, so it’s no wonder customers of these products are spreading the word to their parents. There really is a better way to trade, after all. Time to text your Mom and Dad…

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