Snapshots

Retail investors bet on cornerstone Silicon Valley companies

Data from Robinhood shows strong user sentiment towards technology stocks

May 19, 2020

Number of Robinhood investors holding stock

  • The Menlo Park-based startup Robinhood is a commission-free stock investment and trading brokerage that has gained popularity through its stock and cryptocurrency trading app.

  • Since COVID-19 sent stocks tumbling in early March, many younger investors saw this as an opportunity to individually invest in the stock market as half of new Robinhood investors were first-time investors.

  • Total investors eclipsed the 10 million mark in December, and another 3 million investors joined Robinhood so far this year. Robinhood recently raised another $280 million in Series F funding.

  • Silicon Valley companies have proven to be more resilient and competitive than most, some retaining and even blowing past their pre-COVID valuations. Real estate demand over the past economic cycle has been driven by these companies, and they continue to exhibit a path to growth as other industries face major disruption.

  • While the importance of these companies have been emphasized through the world’s largest work from home experiment, many other Bay Area companies have experienced turmoil in their business models, especially those in tourism, events and the sharing economy.