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> Their product can handle the high volatility, their finances can't. Multiple times both here and previously, RH has demonstrated that their product cannot ha
by ogre_codes 6y ago
> Their product can handle the high volatility, their finances can't.
Multiple times both here and previously, RH has demonstrated that their product cannot handle unexpected high volumes of traffic.
Also, their finances are part of their product. They are a financial services company. Money and finance is what they do.
- psychlops 6y agoI admit, I am not aware of their products capacity, but they never mentioned it as an issue, nor has their product crashed this week (that I am aware of). It was a conscious decision to stop trading. They cannot control the volatility of the products they sell and the subsequent increase in the cost of doing business. They can't control their whole supply chain and do not sell GME and other products out of inventory so have to buy it from someone else.
- ogre_codes 6y agoThe problem here is fundamentally Robinhood is in an industry where screwing up has huge consequences for their customers. If Apple has a supply chain issue and my phone is 10 days late, I might be irritated but the most it will cost me is a few days frustration. If Robinhood fails to execute a trade for me, it can and has potentially cost a user tens of thousands of dollars. What happens when the share price starts to give way and Robinhood fails to execute trades as the share-price is dropping rapidly? If I owned shares in GME (or AMC etc) on Robinhood, I'd be getting out now because they've done nothing to suggest they are capable of serving users when things get sketchy. I don't own GME, and will never put money in RH at this point.