Truist's David Smith on the bull case for Robinhood
December 17, 2025 • 2m 52s
Jon Fortt (Anchor)
00:00.070
joining
us
now
is
truist
securities
analyst
david
smith
david
welcome
OK
all
all
of
this
betting
feels
like
a
bit
much
to
me
sort
of
reminds
me
of
the
online
poker
boom
what
was
it
fifteen
years
ago
what's
the
risk
if
consumers
culturally
pull
back
on
risk
or
if
there
are
some
Jon Fortt (Anchor)
00:18.990
regulatory
issues
down
the
line
David Smith (Analyst)
00:22.130
thanks
john
that
is
certainly
a
risk
but
all
the
trends
lately
have
really
pointed
to
you
know
increased
risk
seeking
and
volatility
from
retail
investors
you
can
see
that
with
you
know
increased
investment
in
cryptocurrencies
options
particularly
zero
DTE
's
you
know
this
this
David Smith (Analyst)
00:40.290
kind
of
been
a
secular
trend
for
a
number
of
years
now
and
i
think
robin
hood
is
is
well
positioned
to
offer
that
to
investors
just
given
it's
it's
mix
of
products
and
it's
you
know
trading
interface
today
do
Jon Fortt (Anchor)
00:51.400
you
have
a
signal
in
mind
for
whether
that
might
be
ending
because
you
know
risk
you
can
you
can
take
it
on
until
until
the
floorboards
sort
of
snap
David Smith (Analyst)
01:03.690
no
that's
that's
fair
i
do
think
though
when
you
look
at
robin
hood
's
monthly
data
you
know
while
overall
volumes
have
dipped
a
little
bit
with
the
decrease
in
prices
you
know
from
from
growth
stocks
or
cryptocurrency
overall
there
hasn't
really
been
the
same
decline
in
in
David Smith (Analyst)
01:19.050
average
you
know
trades
and
activity
on
a
on
a
per
day
basis
so
yeah
i
i
do
think
that
you
know
this
this
can
continue
even
with
a
little
bit
of
choppy
market
activity
for
robin
hood
's
users
david
is
robin
Sara Eisen (Anchor)
01:32.600
hood
continue
continue
continues
expanding
out
and
invest
in
different
areas
of
future
revenue
growth
does
it
continue
does
the
stock
continue
to
be
so
correlated
with
crypto
currencies
David Smith (Analyst)
01:43.080
well
i
think
over
time
that
that
should
go
down
you
know
the
stock
still
has
a
decently
high
beta
it's
a
cryptocurrencies
in
in
bitcoin
today
but
going
forward
crypto
trading
revenues
really
should
decline
a
fair
amount
in
terms
of
how
much
of
revenues
revenue
growth
it
David Smith (Analyst)
01:57.440
represents
as
prediction
markets
grow
as
as
the
stock
becomes
more
geared
towards
net
interest
revenues
as
well
and
and
you
know
lending
to
to
customers
in
various
regards
so
over
time
i
could
certainly
see
a
case
for
that
that
correlation
to
crypto
to
to
decline
the
robin
hood
David Smith (Analyst)
02:14.430
to
behave
a
little
bit
more
idiosyncratic
lee
based
on
its
fundamentals
Sara Eisen (Anchor)
02:20.030
as
i
look
at
your
report
here
i
mean
you
talk
quite
a
bit
about
profitability
margin
expansion
how
does
that
play
out
David Smith (Analyst)
02:28.080
so
robin
hood
has
some
really
attractive
operating
leverage
and
incremental
margins
in
its
in
its
business
model
it
has
a
pretty
high
fixed
cost
base
so
any
increased
revenue
it
gets
as
it
expands
with
new
users
and
new
products
a
lot
of
that
should
drop
to
the
bottom
line
and
David Smith (Analyst)
02:44.960
you
know
that
also
frees
up
additional
capacity
for
up
in
the
to
invest
and
really
create
a
flywheel
almost
to
to
drive
future
growth
as
well
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