Robinhood reports 43% revenue decline
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Re: Robinhood reports 43% revenue decline
#2I feel like regardless of the reasons they did it, whether or not it was necessary, they lost a lot of good faith with the users when they locked the GME and crypto trading during that whole thing. I have no idea how necessary their actions were but regardless of its necessity it still cost a lot of user good will.
Re: Robinhood reports 43% revenue decline
#3Much of what Robinhood actually added (an app) has been mimicked and copied by actual brokerages.
And having your investment platform be basically synonymous with wallstreetbets isn’t that great.
Re: Robinhood reports 43% revenue decline
#4I feel like regardless of the reasons they did it, whether or not it was necessary, they lost a lot of good faith with the users when they locked the GME and crypto trading during that whole thing. I have no idea how necessary their actions were but regardless of its necessity it still cost a lot of user good will.
this is a good example of the importance of comms and user education. robinhood didn't lock trading - or at the very least, they were far from the only brokerage to do so and had
very little choice in the matter. however, they were the front end that uninformed users experienced it through and thus took a huge PR hit
Re: Robinhood reports 43% revenue decline
#5What an interesting business model. Regardless of what Robinhood aspires to be, its target demographic used it for easy speculation. Access to options trading with as little friction as possible and meme coins, for example. When most speculators lose their money, who remains on the platform? Is anyone using Robinhood for long term financial investment?
Add in mistrust from your users (GME, AMC, et al) and increasing competition from the more "reputable" services that have made trading on mobile easier and it doesn't look great.
There's similarities to casinos and bookmakers, except those folks controlled the odds and could entice customers +/- as needed to bring in traffic. Robinhood doesn't have that option.
Re: Robinhood reports 43% revenue decline
#6Much of what Robinhood actually added (an app) has been mimicked and copied by actual brokerages. And having your investment platform be basically synonymous with wallstreetbets isn’t that great.
Fidelity iOS app even has a beta toggle that sprinkles that UI/UX competitive advantage that Robinhood pioneered in the space. Anyhow, I wonder how much revenue decline is expected post-IPO, one would assume that they hyper-optimize KPIs 1-2 years before IPO to have good metrics and then those strategies do not continue in the longer term.
Re: Robinhood reports 43% revenue decline
#7Re: Robinhood reports 43% revenue decline
#8This is what happens when your clients come to realize they're getting screwed in exchange for "free" trades. Search "robin hood order flow".
Re: Robinhood reports 43% revenue decline
#9What an interesting business model. Regardless of what Robinhood aspires to be, its target demographic used it for easy speculation. Access to options trading with as little friction as possible and meme coins, for example. When most speculators lose their money, who remains on the platform? Is anyone using Robinhood for long term financial investment? Add in mistrust from your users (GME, AMC, et al) and increasing…
There's no reason not to use it for long term financial investment. I don't think your money is any safer or less safe between different brokerages. They rode a fad to greatly increase market share. The fad is ebbing, but I'm guessing they are still in a much better spot than they were in 2019.
Re: Robinhood reports 43% revenue decline
#10I feel like regardless of the reasons they did it, whether or not it was necessary, they lost a lot of good faith with the users when they locked the GME and crypto trading during that whole thing. I have no idea how necessary their actions were but regardless of its necessity it still cost a lot of user good will.
this is a good example of the importance of comms and user education. robinhood didn't lock trading - or at the very least, they were far from the only brokerage to do so and had very little choice in the matter. however, they were the front end that uninformed users experienced it through and thus took a huge PR hit
Robinhood thrived initially because they targeted uneducated investors. I downloaded the app, and the confetti explosion after stock purchase really turned me off. They wanted to make it fun. They wanted to target the dopamine receptors targeted by gambling.
All people who I interact with who are investing with robinhood have very little knowledge of the financial system. I hate making a generalization, but after the whole scandal it seems that robinhood investors were/are in fact not very knowledgeable about how trading works.