Robinhood Raises Another $2.4B from shareholders • Hacker News Board

Re: Robinhood Raises Another $2.4B from shareholders

#11

Post by milesdyson_phd » Mon, Feb 01, 2021, 5:26 PM UTC

Jtsummers wrote: post #4

dannyphantom wrote: post #2

I'm curious if this is to address the current potential of a large shift of users moving to different brokerages and to keep Robinhood afloat until IPO in which it will have to fend for itself. I've seen a large sentiment online, and in public spaces expressing how angry the consumer is about RH restricting trading.

People still use Bank of America and Wells Fargo despite the incredibly customer-hostile things they've done in the past. I will not be surprised if Robinhood weathers this pretty well after a short term hit.

I wonder how/if age demographics play into that, especially with regards to millenials/gen z.

Re: Robinhood Raises Another $2.4B from shareholders

#12

Post by hikerclimb » Mon, Feb 01, 2021, 5:26 PM UTC

50% of options trading is luck. So to reduce risk they created Robinho od to steal money from poor people. Basically every major corporation is in on it. They control what articles we get based on who lives in a poor area vs a rich area.

Re: Robinhood Raises Another $2.4B from shareholders

#13

Post by f430 » Mon, Feb 01, 2021, 5:26 PM UTC

Jtsummers wrote: post #4

dannyphantom wrote: post #2

I'm curious if this is to address the current potential of a large shift of users moving to different brokerages and to keep Robinhood afloat until IPO in which it will have to fend for itself. I've seen a large sentiment online, and in public spaces expressing how angry the consumer is about RH restricting trading.

People still use Bank of America and Wells Fargo despite the incredibly customer-hostile things they've done in the past. I will not be surprised if Robinhood weathers this pretty well after a short term hit.

Apples and oranges.

Re: Robinhood Raises Another $2.4B from shareholders

#14

Post by SEJeff » Mon, Feb 01, 2021, 5:28 PM UTC

f430 wrote: post #9

It puzzles me how people still think Robinhood can remain competitive knowing they sell user's order flow to hedge funds and restricted free market movement of capital in the markets. Still restricting purchases of GME and looks like this was just to keep the lights on. There isn't going to be an IPO after this GME fiasco. The founders played themselves and possibly will never be trusted again. Also the people who in…

> It puzzles me how people still think Robinhood can remain competitive knowing they sell user's order flow to hedge funds

Many brokers do this. They get better execution services from hedge funds / electronic traders than they could possibly build themselves. Given rules like NBBO for equities, this can really matter. It saves them money in engineering a hard problem AND makes them money from the other side.

Re: Robinhood Raises Another $2.4B from shareholders

#15

Post by stephen82 » Mon, Feb 01, 2021, 5:28 PM UTC

f430 wrote: post #9

It puzzles me how people still think Robinhood can remain competitive knowing they sell user's order flow to hedge funds and restricted free market movement of capital in the markets. Still restricting purchases of GME and looks like this was just to keep the lights on. There isn't going to be an IPO after this GME fiasco. The founders played themselves and possibly will never be trusted again. Also the people who in…

You mean ancient Greek, right?

"ιχθύς εκ της κεφαλής όζειν άρχεται".

Re: Robinhood Raises Another $2.4B from shareholders

#16

Post by hehehaha » Mon, Feb 01, 2021, 5:29 PM UTC

Imagine you found a number one trading platform and end up having to dilute your stake by a factor of 2 (or more likely) within a week because of a meme stock. I actually feel bad for the founding members at RH.

Re: Robinhood Raises Another $2.4B from shareholders

#17

Post by Jtsummers » Mon, Feb 01, 2021, 5:29 PM UTC

f430 wrote: post #13

Jtsummers wrote: post #4

Earlier quoted context omitted.

People still use Bank of America and Wells Fargo despite the incredibly customer-hostile things they've done in the past. I will not be surprised if Robinhood weathers this pretty well after a short term hit.

Apples and oranges.

Wells Fargo literally opened accounts for people without their consent, pushing balances below critical thresholds and causing their customers to lose money they had no right to lose to fees. BoA foreclosed on homes they never should have foreclosed on.

These weren't one-off incidents (Robinhood has not, yet, established a trend), these were systemic issues with these banks. And people still go to them. They're getting new accounts daily, not subsisting off of legacy accounts.

Re: Robinhood Raises Another $2.4B from shareholders

#18

Post by abluecloud » Mon, Feb 01, 2021, 5:29 PM UTC

r00fus wrote: post #8

dannyphantom wrote: post #2

I'm curious if this is to address the current potential of a large shift of users moving to different brokerages and to keep Robinhood afloat until IPO in which it will have to fend for itself. I've seen a large sentiment online, and in public spaces expressing how angry the consumer is about RH restricting trading.

Lots of chatter on /wsb talking about Fidelity migration. I'm not sure how that translates into actuals - like the WhatsApp migration it may be severe or it might be a tempest in a teapot. But at least it identifies who are they real customers for RobinHood.

not quite the same as whatsapp, you're isolated. you dont need your friends to move, it's something you can do on your own.

"reports" that i'd read said that fidelity were getting something like 600% increase in signups (who knows if thats because of this movement or because people hate RH).

Re: Robinhood Raises Another $2.4B from shareholders

#19

Post by rootsudo » Mon, Feb 01, 2021, 5:30 PM UTC

r00fus wrote: post #8

dannyphantom wrote: post #2

I'm curious if this is to address the current potential of a large shift of users moving to different brokerages and to keep Robinhood afloat until IPO in which it will have to fend for itself. I've seen a large sentiment online, and in public spaces expressing how angry the consumer is about RH restricting trading.

Lots of chatter on /wsb talking about Fidelity migration. I'm not sure how that translates into actuals - like the WhatsApp migration it may be severe or it might be a tempest in a teapot. But at least it identifies who are they real customers for RobinHood.

Fidelity opened an account, took my money and I was able to trade this morning w/o restriction.

Robinhood,on the other hand is still tumbling thumbs on their ACH transfer I did last monday. No margin was accessed.

Going to close the RH account, I see no value in it. I do most of my trading on another platform, but felt like playing with fun money to see how it'd be.

Not fun at all.

Re: Robinhood Raises Another $2.4B from shareholders

#20

Post by vincentmarle » Mon, Feb 01, 2021, 5:31 PM UTC

We are starting to see the limits these apps have, they are just not cut out to be considered a professional broker.

It's funny they worry so much about (short-term) liquidity, while their long-term brand & trust & customer base erodes irrecoverably by the minute.