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Most dot-com stocks went to 0. There's a famous "99 percent club" of stocks that became wallpaper.
but if you followed the advice of modern portfolio theory, you would've purchased a diversified set of stocks (cap weighted) during the dotcom bubble, including companies such as google, amazon, and apple. I think even if 99% of the purchases went to zero, you'd probably still be ahead if you're diversified properly.
I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.
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> You don't see Vanguard or Fidelity losing a third of their userbase in a year. I can't read the article, but you define "monthly active users" as a user exiting the platform i.e. pulling their money out?! Originally, I had assumed it was "users who don't open the app/website" but expectation difference caused me to look it up: > Robinhood defines a monthly active user as a "unique user who makes a debit card transa…
> or have a Funded Account to be included in MAU If you have a balance of $1, wouldn’t you be counted as an active user ? It sounds to me that an active user is someone with funds or that interacted with the app/website while logged in. I’m not sure the second category made much sense to begin with (unless you wanted to inflate the numbers during a bull run)
No metric is perfect nor stands alone. What does it mean in context to RH, FB, Apple? The value of a MAU is relative. The key is it's well defined, stable and trackable over time. Assigning value is up to diligence at that point.
I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.
I believe the reason for the correlation with crypto market and Robinhoods active user count be the demographics of people who invest heavily in crypto;Gen X, millennials and zoomers. Thoughts ?
Compare that to EPS and Net revenue of Boeings third quarter results and forward guidance.
Stock market has been in a slump all year, crypto down huge. Close to 100k layoffs in tech (according to layoffs.fyi). I think people got other things on their mind than trading stocks/crypto.
Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks. The unemployment rate is still only 3.5% in the US, so anyone getting laid off is being hired back almost immediately with very little slack. The Fed would actually prefer to see higher unemployment around 6% to better manage inflation so they'll keep interest rates high until they see that happen.
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> Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks. Is this actually a "valley" though? I'm not sure about that. It could be the worst of this recession is yet to come for both types of assets. Buying at the bottom is a great idea, but the hard part is knowing where the bottom actually is.
Dollar-Cost Averaging is the way to go. It doesn't matter whether the stock market is up or down.
It's as if not everyone can be rich with this one simple trick of dumping your hard earned cash into buying whatever Blackrock is dumping on you every month till eternity.
What is this in the context of the wider market vs other Retail brokers? I don't think this is a knock against RH more a description of what's happening in main-street.
RH was a joke from the start. To invoke a no true scotsman, I know literally zero actual traders using the platform. Value investors like Schwab for it's customer service. Sometimes they prefer other firms (Fidelity). Day traders, etc almost universally use Interactive Brokers. Having done some profitable trading in my day I can tell you that IB's platform is arguably the best if your capitalization is less than 500,…
As that's no longer applicable for me, I find more and more reason to move all my accounts to Interactive Brokers. The entire history of their nickel-and-diming fees was easily paid for by letting me enter a single position one day in 4AM-7AM pre-market trading hours, which those other basic brokers (including IBKR Lite) don't support.
RH's health is fine. They are still getting positive net deposits, and they're still adding features. It's a great business to be in. They have insanely high margins and their customers' default behavior is to put more money into them. Once they have IRAs, there won't be a good reason for normal investors who just bag-hold stocks to switch away. They have $6 billion of cash, which gives them a ton of runway.
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Interesting thought. Is Robinhood that common in the crypto world? I know they support it, but I would have guessed it was an “also” feature rather than a driver.
Crypto was responsible for approximately 35% of Robinhood's revenue in 2021.
From FY21 10-K filing[1] p. 74, cryptocurrencies represented 23% of total net revenues, or 29.9% of total transaction-based revenues.
[1] https://www.sec.gov/Archives/edgar/data/1783879/000178387922...