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Robinhood Shares Down 60% Since IPO
- jonathan-adly 5y agoI don't know who actually wants to own part of this company. They betrayed their user base. Other than Cathy Wood institutions hate them. There are now legitimate competitors with slick UI. PFOF is a regulatory risk. Good news is, their market cap is now approaching their cash on hand (~$10B). So maybe that would be the floor.
- pxue 5y agoARKK etf is heavily invested, about 200M worth. Average cost $33
- symlinkk 5y ago> There are now legitimate competitors with slick UI Like?
- jonathan-adly 5y agoPublic, Webull, etoro and a couple of other newish startups.
- ushakov 5y agowould add TradeRepublic also
- whoomp12342 5y agocalling the bottom is a fools game
- mupuff1234 5y agoAlmost all recent tech IPO\SPACs got killed in the last few months. It all just feels like a huge pump and dump, even if there is solid tech\product in some cases (but just not worth anywhere near the IPO valuations).
- rchaud 5y agoIt seems like going with an SPAC itself is a negative signal. For one thing, you lack the social proof of getting institutional investor buy-in, which would happen as part of a regular IPO 'road show'.
- mgh2 5y ago“Truths are more likely to be discovered by one man than by a nation.” — René Descartes Isn't that the purpose of the IPO, company marketing to the public? All are susceptible to media hype, but it is retail investors who suffer most: they are the least educated or able to differentiate between information fact or fiction pumped by the elite, even [or especially] in big numbers - wisdom of the crowd, social media, political polarization, etc.
- moneywoes 5y agoStill better than Peloton I guess
- llampx 5y agoIPOs are a pump and dump which only benefits GS and other investors who can offload their bags on retail. Even successful businesses like ABNB are not immune.
- rchaud 5y agoThis was not an IPO, it was an SPAC.
- marvel_boy 5y ago"Robinhood, which does not charge an upfront commission to trade, makes about three-quarters of its revenue from payment for order flow, which are payments it gets from market-makers who execute its customers' trades. The more people trade, the more money Robinhood gets." Accordingly all this companies (Peloton, Robinhood,..) will suffer now that the pandemic & WFH is finishing.
- mgh2 5y agoTheir revenues were also heavily tied to crypto https://www.cnbc.com/2021/08/18/robinhood-crypto-revenue-jumped-over-45-fold-in-q2-to-233-million.html https://www.cnbc.com/2021/08/18/robinhood-crypto-revenue-jum...
- mschuster91 5y ago> Accordingly all this companies (Peloton, Robinhood,..) will suffer now that the pandemic & WFH is finishing. Meh. Amateur investment into stocks and option plays certainly won't be gone even if WFH ends - that trend was already present way before the virus was discovered. RH just burned large parts of their user base and inspired countless memes by their despicable acts in the $GME affair.
- hprotagonist 5y agowe (don't) like the stonk, ok?!
- deleted 5y ago[deleted]
- rvz 5y agoThis really is unsurprising [0], given the countless warnings [1][2] to avoid the hype and jumping into the start of its IPO. [0] https://news.ycombinator.com/item?id=27983568 https://news.ycombinator.com/item?id=27983568 [1] https://news.ycombinator.com/item?id=27978320 https://news.ycombinator.com/item?id=27978320 [2] https://news.ycombinator.com/item?id=27937145 https://news.ycombinator.com/item?id=27937145
- llampx 5y agoYou called it.