Things are not looking good for Robinhood. The heads of rival institutions like FTX’s Sam Bankman-Fried have already purchased shares in the once-hot retail investment fintech, and recently the company announced that it would be laying off just shy of a quarter of its workforce in response to a shrinking user base and 40% dip in year-over-year revenue growth.
Yet for the many investors suspecting that the embattled company might soon be looking to sell itself to a larger entity, Chief Executive Officer Vlad Tenev has just one word to say: “No.”
This clear message was delivered to an investor the day after Robinhood announced its layoffs. Tenev went on, “I think we’re in a great position as a stand-alone company. I love us as a stand-alone company.” In other words: there will be no sale in the near future.
That Robinhood works well as a standalone company is certainly borne out by its handling of its precarious financial situation. The company’s stock climbed by 11.7% in response to the announcement of downsizing, and with $6 billion in cash on its balance sheet by the end of Q2, cutting costs might be just what Robinhood needs to get back on its feet.