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Robinhood, in Need of Cash, Raises $1B from Its Investors

nytimes.com

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Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#31

Post by MattGaiser »

serf wrote: post #16
arcticbull wrote: post #11

Earlier quoted context omitted.

It’s not a scam it’s just a pretty mediocre broker with a fancy ui. Lest we forget they introduced many traders to options, for better and worse. They are/were WSBs broker of choice. They changed the fee landscape in trading US-wide. It’s hard to say they weren’t impactful, though we can disagree on the positivity of the impact itself.

>a fancy ui. it's flashy and sort of stylish, but it's really woefully under-featured compared to just about any other broker e-trading software out there.

> it's really woefully under-featured compared to just about any other broker e-trading software out there.

Alternatively phased:

It is easy to use even for people who are new to investing.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#32

Post by mdoms »

throwawaysea wrote: post #23

So much for the conspiracy theory about Robinhood changing policies to favor institutional traders over retail investors. Speculation is healthy but I am surprised to see so many educated people fall for social media fear mongering to the point that they decided to drive down Robinhood’s app reviews. Many of my friends who ate up all the outrage are the same people who laughed at QAnon conspiracy theorists, but here…

QAnon is not even remotely in the same league as this. Fuck outta here with that.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#34

Post by amscanne »

sgpl wrote: post #21
tempsy wrote: post #13

The CEO just gave 3 interviews tonight and denied this was at all related to liquidity issues for the company in all 3 when pressed. Terrible look.

A clip from one of those interviews: https://twitter.com/ChrisCuomo/status/1354994000294522881 In the entire interview there's no real answer to any question.

His first answer was reasonably polished and okay. Then it all goes to shit. I guess he didn’t expect the third degree?

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#35

Post by mdoms »

AndrewBissell wrote: post #3

So they put a halt on opening new positions not to protect their customers, but because it was straining their own liquidity position. They're certainly not the first broker to choose lying to the public over confessing to liquidity issues -- although I would say they're much more likely to weather this storm than their predecessors.

If you believe this you are legitimately the dumbest guy on this website.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#36

Post by bredren »

Clewza313 wrote: post #25
n_io wrote: post #14

Earlier quoted context omitted.

I’d imagine liquidity issues are the least of their concerns right now. At least, they would be to me.

Why? For a brokerage it's an existential concern. And they can't publicly admit it's a problem either, because that would likely trigger the brokerage equivalent of a bank run. (Of course, odds are they're already grappling with that as well.)

I had a neutral to negative view toward this product before today.

In part due to the product’s UX having to change after a customer killed themselves and cited the app in their suicide note. [1]

I noticed that before but bad stuff happens, I had not heard of further issues and it was likely a series of contributing factors.

That said, this bind broke the entire concept of the branding of the product. I’d never install this thing now.

If they have broken the brand and lost trust of users, no amount of short or medium term liquidity will save the company.

[1] https://news.ycombinator.com/item?id=23578794

https://suicidepreventionlifeline.org/

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#37

Post by peytn »

ajsharp wrote: post #24

"To continue operating, it drew on a line of credit from six banks amounting to between $500 million and $600 million to meet higher margin, or lending, requirements from its central clearing facility for stock trades, known as the Depository Trust & Clearing Corporation." Non-zero chance had they not haulted trading on those symbols they would've been insolvent by close of trading today, depending on the size of the…

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#39

Post by Triv888 »

MattGaiser wrote: post #31
serf wrote: post #16

Earlier quoted context omitted.

>a fancy ui. it's flashy and sort of stylish, but it's really woefully under-featured compared to just about any other broker e-trading software out there.

> it's really woefully under-featured compared to just about any other broker e-trading software out there. Alternatively phased: It is easy to use even for people who are new to investing.

I think that it makes it worst even for new investors... maybe better for computer-illiterate people, but that, I don't know if it is still a thing.
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