In this article5 sections
Robinhood chief executive Vlad Tenev faces questions on the company’s third-quarter earnings call on Tuesday, October 27, as a dispute over tokenized stocks gathers pace. According to Decrypt, the fight developed quickly: a conservative nonprofit, the Common Sense Leadership Fund, bought a full-page Wall Street Journal ad telling public-company CEOs that the SEC had given them the right to opt out and they had 30 days to act.
Robinhood Markets reports the results after the closing bell. Coincentral reported that analysts expect $0.56 in earnings per share on $1.44 billion in revenue, up 13% year over year, while options traders price a 10.2% move in either direction, or about $9.70 per share, off the $95.07 close on October 23.
Also read: Bernstein: Robinhood prediction markets to hit $1.7B by 2028
Key facts
- Objecting companies rose from nine on October 15 to 16 by October 19 and to 22 by October 23, equal to 35% of the 63 companies the OKX-ICE venue planned to list, per Decrypt.
- Robinhood Chain launched its public mainnet on July 1 and generated roughly $51 million in revenue in its debut quarter, against $41 million for Ethereum, whose own network revenue fell 35%, according to Decrypt.
- The chain processed about $65 billion in DEX volume, fourth among all networks, with $13.7 billion of that in tokenized equities.
- Coincentral reported that HOOD fell after each of its last four earnings reports, in drops of 3.61% to 13.24%, and is down 18.4% over the past month and 16% this year.
- Bitcoin ETFs drew $110 million in net inflows on Monday while ETH ETFs saw $88 million in outflows, per Decrypt.
Objections build against tokenized shares
On October 19 the venue amended its rules to let issuers tokenize their own shares, which would give those companies control of the process. Decrypt reported that no objector has taken up the option. The objector list expanded from Microsoft, Alphabet, Goldman Sachs, Verizon, Broadcom and UnitedHealth to include Wells Fargo, Cisco, Marvell, Arm, Moderna and Intuit. The ad listed eight risks, from pricing disparities and cybertheft to AML and KYC loopholes and absent investor protections.
Tenev did not make a formal statement, but Decrypt mentioned that a tweet from Monday suggested he may address the issue, and no final position has been reported by either outlet.
Also read: OKXICE Files SEC Notice for 24/7 Tokenized Stock Venue
Why it matters
Tokenized equities make up a meaningful slice of Robinhood Chain activity. Pull them out and connected products such as Long.xyz’s meme-versus-stock trading pairs and Orbio’s tokenized NVDA funding would lose their base. AMC’s chief executive has already called the stock tokens “contemptible”, as noted by both outlets. Wider crypto markets add pressure: Bitcoin traded at $80.3k, down 0.6%, while Galaxy Research declared the bear market over and head of research Alex Thorn argued the June low marked the bottom. Wall Street was also under strain: Coincentral reported the Dow fell 1.23% to 52,215.16 and the S&P 500 slipped 0.52%, with Brent crude near $114 to $115 a barrel.
Analyst targets and the numbers to watch
Coverage is split. Coincentral reported that Wells Fargo’s Daniel Welden cut his price target to $120 from $125 while keeping a Hold rating, Rosenblatt’s Chris Brendler began coverage with a Buy and a $135 target, and Truist’s David Smith raised his target to $134 from $130 with a Buy. TipRanks lists a Strong Buy consensus with a $139 average target. Robinhood’s last quarter showed $1.31 billion in revenue, up 32.3%, and 28.4 million users, up 7.2%, per Coincentral. The stock-token ecosystem also draws on Robinhood’s Q1 token launch, which brought AMC’s criticism alongside a marketplace debut in the EU.
These targets are projections, not guarantees. This is not financial advice, and markets are volatile and uncertain.
What to watch
The earnings call itself is the immediate test: whether Tenev addresses the tokenized-stock objections will determine how investors read the company’s position. The 30-day opt-out window referenced in the Journal ad sets a second deadline for public companies deciding whether to block tokenization of their shares.
Reported by decrypt.co.
Sources: Decrypt, Coincentral