, Charlie Munger. The 98-year-old’s comments came a day after the company’s shares hit a record low. While harsh and perhaps self-serving, there’s something to Munger’s sentiment. Robinhood could use a bit of his boss’ conservative thinking.
But with pandemic lockdowns and surplus cash from stimulus checks gone – not to mention a decline in equity values – the day trader is fading. The $9 billion firm run by Vlad Tenev, whichon April 28, saw total net revenues fall 43% in the first quarter this year compared to last year. More than 70% of that revenue is from so-called transaction-based revenues: Routing user orders to firms who pay for them, allowing Robinhood users to trade for more or less free.
The trouble is Robinhood’s initial plans to diversify have whiffs of risky business. Among other things, it is letting customers invest part of their paychecks with ease and will offer retirement accounts later this year. That makes the platform more attractive to users looking to invest for the long term. But, the products might take a while to diversify the company away from the type of freewheeling trading that Munger doesn’t like.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Utoday_en - 🏆 295. / 63 Read more »