Robinhood Markets Inc. (NASDAQ: HOOD) shares fell 1.32% to $94.51 on Thursday, erasing an earlier premarket gain of 5.77% that had lifted the stock to $101.30.

The reversal occurred against a backdrop of broader market declines, with the Nasdaq down 0.56% and the S&P 500 losing 0.37%. The trading activity followed developments from a White House summit on cryptocurrency policy held Wednesday.

Crypto Policy Summit Lifts Sentiment

Cryptocurrency-related stocks initially gained momentum following policy updates from the summit. The meeting included CFTC Chairman Michael Selig, SEC Chairman Paul Atkins, and executives from Coinbase Global Inc., Robinhood, Ripple, and Kalshi.

President Donald Trump reiterated his commitment to U.S. leadership in cryptocurrency and urged Congress to pass the CLARITY Act, legislation intended to establish regulatory standards for digital assets.

Tom Lee’s Avoid Call Sparks Debate

The stock drew attention on X following a CNBC panel discussion about Tom Lee, co-founder of Fundstrat Global Advisors and Chairman of Bitmine Immersion Technologies. Lee recently named HOOD as a stock to avoid in 2026.

User Dr. Crossroads questioned the call, pointing to factors including the expected end of the crypto winter, prediction markets, and Robinhood’s international expansion.

Mark Newton, Global Head of Technical Strategy at Fundstrat, clarified that HOOD’s placement was based on a monthly technical ranking rather than a recommendation to short or avoid the stock.

“The bottom 5 are not ‘shorts’ per se, or avoids,” Newton said, adding that HOOD’s chart is in consolidation and could take time for its fundamentals to materialize.

Robinhood Markets Inc. (NASDAQ: HOOD) CEO Vlad Tenev said Wednesday that Trump Accounts currently offer children access to the S&P 500 through a low-cost exchange-traded fund. In an interview on CNBC’s "Squawk Box," Tenev discussed the program’s strategy, emphasizing simplicity and long-term ownership.

Tenev noted that the initial investment option is a diversified portfolio of prominent companies via a State Street ETF. He stated the goal was to make it as easy as possible for every American starting at birth to gain access to the U.S. economy and see the magic of compound interest.

"Right now you can get the S&P 500 through a low cost ETF provided by State Street," Tenev said. "And we wanted to make it as easy as possible for every American starting at birth to get access to the great American economy, to get ownership of these companies from birth and see the magic of compound interest."

Program Structure and Growth

Trump Accounts are tax-deferred investment accounts for eligible children. Children born between 2025 and 2028 can receive a one-time $1,000 contribution from the U.S. Treasury. Families, employers, and other contributors can make additional contributions.

Robinhood launched its Trump Accounts app in June ahead of the program’s July 4 rollout. The app allows eligible families to activate accounts designed to invest primarily in low-cost U.S. stock index funds and exchange-traded funds.

In July, Tenev said enrollment approached 6 million, claiming growth faster than many of America’s most successful tech companies. The program has attracted corporate support, including Strategy Inc. (NASDAQ: MSTR), which pledged to contribute $250 annually to accounts for eligible children of its U.S. employees and a one-time $1,000 contribution for qualifying children born on or after Jan. 1, 2025.

Government Enrollment Goals

Internal Revenue Service Chief Executive Officer Frank Bisignano said in July that the government wants every eligible American family to enroll their children in Trump Accounts. The long-term goal is to reach 70 million children under 18.

Bisignano stated the government is working with tax-preparation companies and exploring partnerships with banks to ease enrollment. Robinhood serves as an initial broker alongside The Bank of New York Mellon Corp. (NYSE: BNY). Other companies including Coinbase Global Inc. (NASDAQ: COIN), Circle Internet Group Inc. (NYSE: CRCL), Morgan Stanley (NYSE: MS), and Goldman Sachs Group Inc. (NYSE: GS) have announced contributions or related commitments.