Tom Lee Calls Robinhood 'Morgan Stanley' For Gen Z, Draws 1980s Wall Street Broker Analogy To Explain Fintech's Rise

Fundstrat Global Advisors Head of Research Tom Lee compared Robinhood Markets Inc. HOOD to Morgan Stanley MS for the younger generation, drawing parallels to how discount brokers emerged for baby boomers in the 1980s.

What Happened: “I think it’s the Morgan Stanley of this young generation,” Lee said during an interview with Amit Kukreja. “What people forget is in the 1980s, Wall Street was this old boys network and a few brokers were starting up for the baby boomers.”

Lee referenced how Charles Schwab Corporation SCHW began as a newsletter before becoming a broker, alongside E-Trade, to serve the boomer generation. “That is Robinhood today,” he said.

The strategist praised Robinhood’s cryptocurrency integration and user interface, calling the company “incredibly smart” for understanding the importance of design and making strategic moves. Lee’s firm operates the Fundstrat Granny Shots U.S. Large Cap ETF GRNY, which holds a 3.52% position in Robinhood shares.

Robinhood’s stock has surged following aggressive cryptocurrency expansion plans, including the planned acquisition of Bitstamp crypto exchange and commission-free tokenized U.S. equities for European customers. CEO Vlad Tenev aims to establish “crypto as the backbone of the global financial system.”

Why It Matters: The fintech company recently launched tokenized versions of over 200 publicly listed equities across Europe, offering 24/5 access to U.S. stock exposure. It also introduced non-tradable private stock tokens for OpenAI and SpaceX as promotional giveaways.

However, Robinhood faces regulatory scrutiny as Lithuania’s central bank seeks clarification on its tokenized equity products. The company was also excluded from the latest S&P 500 index reconstitution, causing a brief stock retreat.

Despite challenges, Robinhood’s market capitalization of $80.54 billion positions it as a significant player compared to Morgan Stanley’s $226.42 billion and Charles Schwab’s $167.07 billion market caps.

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