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They don't own it, but they're their largest customer.
by alexdumitru 6y ago
They don't own it, but they're their largest customer.
- luxuryballs 6y agoAin’t that some shit.
- leroy_masochist 6y agoCitadel is not a Robinhood customer like retail investors are customers; they're a) an execution partner who executes Robinhood's trades and b) a source of revenue because they actually pay Robinhood for the privilege of doing this. It's worth it to Citadel because they can use the information in the order flow to front-run the retail market.
- sudosysgen 6y agoRetail investors aren't really the customers, unless they borrow margin really they're the product.
- findthewords 6y agoIn other words, Citadel is a customer of RH while the app's user data is the product.
- xiphias2 6y agoExactly, but if RH loses the product, it loses the customer as well, so it was a lose-lose situation that was created by the business model.
- thekyle 6y agoSeems similar to the users vs. customers (advertisers) situation that most websites have.