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Robinhood cuts losses after transaction revenue drops

182 pointsby lxmover 2 years ago

10 comments

adoxyzover 2 years ago
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.
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MattyMcover 2 years ago
I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.
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reducesufferingover 2 years ago
&gt; Rising interest rates helped lift quarterly net interest revenue to $128 million, more than doubling from the same period a year ago. Chief Financial Officer Jason Warnick said the company has about $17 billion in assets that generate interest revenue.<p>While Robinhood used to pay a competitive interest rate for cash in the account, it is now 1.5% while Fed risk-free rate is now 3.75%+. You need to pay for Gold subscription to access the decent interest rate.<p>Square&#x2F;Block&#x2F;Cash App also just announced a huge boost in profitability.<p>While it wasn&#x27;t feasible in the last years of zero interest, now, digital wallets are profiting off the difference of giving you 0 - 1.5% interest of your sitting cash while they pocket 3.75%+.
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bob1029over 2 years ago
I&#x27;ve been back and forth over robinhood vs fidelity vs IBKR for a few years now.<p>I do not do any heavy day trading, but I do like to buy a few shares of things throughout the day, every day.<p>As a consequence, the user experience in mobile form factor is a big aspect for me. I understand for any professional in the space, this is perceived as lunacy. I am no professional.<p>Once IRA support is added, I&#x27;ll be locked in for life. I don&#x27;t understand how someone can use the fidelity or IBKR mobile apps and think &quot;yes this is all ok&quot; after spending 5 minutes in the RH app.
irjustinover 2 years ago
What is this in the context of the wider market vs other Retail brokers?<p>I don&#x27;t think this is a knock against RH more a description of what&#x27;s happening in main-street.
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kylehotchkissover 2 years ago
If Robinhood had to close shop, who&#x27;s a good broker to transfer holdings over to?
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webinvestover 2 years ago
<a href="https:&#x2F;&#x2F;archive.ph&#x2F;5URwT" rel="nofollow">https:&#x2F;&#x2F;archive.ph&#x2F;5URwT</a>
TheLoafOfBreadover 2 years ago
Stock does not go up, people does not care.
jesuspieceover 2 years ago
Gee I wonder why
skymastover 2 years ago
Why would anyone trust a financial institution with their money when they have acted like Robinhood as acted?<p>This is a fundamental question.
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