U.S. Considers Robinhood for Children’s “Trump Accounts,” Shares Down 30%
Bloomberg reports the U.S. government is considering entrusting Robinhood with overseeing “Trump accounts” for millions of children. HOOD shares have dropped 30% from a $153.86 peak, trading at a 45 P/E versus the S&P 27, though Q3 sales doubled, profits tripled, and the consensus target is $136.62.
1. U.S. Government Weighs Robinhood for Oversight of Millions of Children’s Investment Accounts
Bloomberg News reports that the U.S. Treasury is evaluating Robinhood Markets to administer so-called "Trump accounts," a new program designed to provide custodial investment vehicles for an estimated 10–15 million minors. Sources say the administration favors Robinhood’s low-fee structure and API infrastructure, which could onboard accounts at scale within weeks. If selected, Robinhood would handle account opening, compliance screening and quarterly statements, potentially driving a 5–7% increase in funded retail accounts and bolstering the platform’s core user base by up to 20 million new sign-ups over the next two years.
2. Robinhood’s Shares Down 30% From 52-Week High but Q3 2025 Results Highlight Strong Growth
Since peaking at $153.86, Robinhood’s stock has slid 30% to $103.42, underperforming the broader market by roughly 15 percentage points over the last three months. Despite the pullback, Q3 2025 revenue doubled year-over-year to $880 million and net income more than tripled to $120 million, driven by record retail trading volumes and the expansion of its cash management product. At a forward price-to-earnings multiple of 45×—versus the S&P 500’s 27× average—analysts nonetheless see room for upside, with a consensus price target of $136.62 implying 27% potential gains over the next 12 months.