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Robinhood reports 43% revenue decline

wsj.com

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Re: Robinhood reports 43% revenue decline

#11

Post by Palmik »

kyriefh wrote: post #4
ryanmcbride wrote: post #2

I 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

They switched to reduce-only mode for GME, effectively going against the retail tide. The fact that other brokers did it is not an excuse. They should have known their user base better.

And it's not like they did not have other options -- they could have posted more collateral, and given that they raised billions soon after, it was within the real of possibility for them.

Re: Robinhood reports 43% revenue decline

#12

Post by maneesh »

I applied for a Robinhood account and was never approved, after sending in details 3-4 times.

Now, I find out from my bank, that Robinhood leaked my SSN, Drivers License#, Address, and Email to the dark web.

WTF!!!!

Is there any recourse here? My SSN is now all over the dark web.

Re: Robinhood reports 43% revenue decline

#13

Post by ctvo »

woah wrote: post #9
ctvo wrote: post #5

What 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.

Why would you though? What's the advantage of using Robinhood vs. say Fidelity which your 401K and other investments are already on? Robinhood executed on a few things well, one of which was how mobile friendly and low friction it was to execute trades. Long term investment doesn't require that. Pseudo day trading from work and speculating? Yes.

Re: Robinhood reports 43% revenue decline

#14

Post by autosharp »

kyriefh wrote: post #4
ryanmcbride wrote: post #2

I 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

At first I assumed it was because of liquidity problems and not because they wanted to screw customers. But in the hearings later he refused to answer a bunch of easy questions. E.g. the following meme is literally what he said: https://www.reddit.com/r/wallstreetbets/comments/lngem6/do_y...

Q: "Do you realize that you literally manipulated the market. Yes or No?"

Vlad: "Thank you for the great question. When I was a boy in Bulgaria [ladida]"

If he had been honest in his dealings then he wouldn't have had to evade every question posed to him.

Re: Robinhood reports 43% revenue decline

#15

Post by kareemsabri »

Justin_K wrote: post #8

This is what happens when your clients come to realize they're getting screwed in exchange for "free" trades. Search "robin hood order flow".

PFOF is not "screwing" them - it costs on average less than brokerage fees before Robinhood existed. I would venture most people would prefer a bit of a spread on their orders to paying several dollars when they execute a sale.

Re: Robinhood reports 43% revenue decline

#16

Post by bombcar »

ctvo wrote: post #13
woah wrote: post #9

Earlier quoted context omitted.

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.

Why would you though? What's the advantage of using Robinhood vs. say Fidelity which your 401K and other investments are already on? Robinhood executed on a few things well, one of which was how mobile friendly and low friction it was to execute trades. Long term investment doesn't require that. Pseudo day trading from work and speculating? Yes.

Robinhood added fractional shares before other brokers (and some still don’t have them) which is a minor advantage I guess.

Re: Robinhood reports 43% revenue decline

#18

Post by asdff »

Justin_K wrote: post #8

This is what happens when your clients come to realize they're getting screwed in exchange for "free" trades. Search "robin hood order flow".

The vast majority of investors are not trading enough money for these minute scrapings to add up to anything at all. OTOH TD ameritrade et all were charging you $7.99 a trade or whatever hustle they had people forced into previously.

Re: Robinhood reports 43% revenue decline

#19

Post by namdnay »

Palmik wrote: post #11
kyriefh wrote: post #4

Earlier quoted context omitted.

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

They switched to reduce-only mode for GME, effectively going against the retail tide. The fact that other brokers did it is not an excuse. They should have known their user base better. And it's not like they did not have other options -- they could have posted more collateral, and given that they raised billions soon after, it was within the real of possibility for them.

I don’t get your second paragraph. They had to raise collateral right now. Once they raised the billions they could and did

Re: Robinhood reports 43% revenue decline

#20

Post by Miner49er »

maneesh wrote: post #12

I applied for a Robinhood account and was never approved, after sending in details 3-4 times. Now, I find out from my bank, that Robinhood leaked my SSN, Drivers License#, Address, and Email to the dark web. WTF!!!! Is there any recourse here? My SSN is now all over the dark web.

Sounds like you probably got phished?
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