Robinhood Shares Down 60% Since IPO | Hacker News Reader

Robinhood Shares Down 60% Since IPO

forbes.com

44 pointsushakov18 comments

I don't know who actually wants to own part of this company. They betrayed their user base. Other than Cathy Wood institutions hate them. There are now legitimate competitors with slick UI. PFOF is a regulatory risk.

Good news is, their market cap is now approaching their cash on hand (~$10B). So maybe that would be the floor.

ARKK etf is heavily invested, about 200M worth. Average cost $33

> There are now legitimate competitors with slick UI

Like?

Public, Webull, etoro and a couple of other newish startups.

would add TradeRepublic also

calling the bottom is a fools game

Almost all recent tech IPO\SPACs got killed in the last few months.

It all just feels like a huge pump and dump, even if there is solid tech\product in some cases (but just not worth anywhere near the IPO valuations).

It seems like going with an SPAC itself is a negative signal. For one thing, you lack the social proof of getting institutional investor buy-in, which would happen as part of a regular IPO 'road show'.

“Truths are more likely to be discovered by one man than by a nation.” — René Descartes

Isn't that the purpose of the IPO, company marketing to the public?

All are susceptible to media hype, but it is retail investors who suffer most: they are the least educated or able to differentiate between information fact or fiction pumped by the elite, even [or especially] in big numbers - wisdom of the crowd, social media, political polarization, etc.

"Robinhood, which does not charge an upfront commission to trade, makes about three-quarters of its revenue from payment for order flow, which are payments it gets from market-makers who execute its customers' trades. The more people trade, the more money Robinhood gets."

Accordingly all this companies (Peloton, Robinhood,..) will suffer now that the pandemic & WFH is finishing.

> Accordingly all this companies (Peloton, Robinhood,..) will suffer now that the pandemic & WFH is finishing.

Meh. Amateur investment into stocks and option plays certainly won't be gone even if WFH ends - that trend was already present way before the virus was discovered. RH just burned large parts of their user base and inspired countless memes by their despicable acts in the $GME affair.

Their revenues were also heavily tied to crypto https://www.cnbc.com/2021/08/18/robinhood-crypto-revenue-jum...

This really is unsurprising [0], given the countless warnings [1][2] to avoid the hype and jumping into the start of its IPO.

[0] https://news.ycombinator.com/item?id=27983568

[1] https://news.ycombinator.com/item?id=27978320

[2] https://news.ycombinator.com/item?id=27937145

You called it.

IPOs are a pump and dump which only benefits GS and other investors who can offload their bags on retail. Even successful businesses like ABNB are not immune.

This was not an IPO, it was an SPAC.

Still better than Peloton I guess

we (don't) like the stonk, ok?!

Reply on news.ycombinator.com