Robinhood Files for IPO

šŸ“Š Investing
21

@JustLookingThx There you go: https://archive.md/ClBER

22

Thanks @VicVega

As for Robinhoods IPO,
I ainā€™t touching that stock. Business model way too risky imo (PFOF, crypto, gamification worries of lawmakersā€¦ the list is long)

But I will watch from the sidelines with interest for sure xD

23

Username checks out.

24

Any thoughts on the earnings? :thought_balloon:

25

Screenshot_20211027_191102_com.avuscapital.trading212
Screenshot_20211027_191102_com.avuscapital.trading2121080Ɨ2312 145 KB

I feel bad for people buying at those hyped IPOs, oh wait I dont. Best way to learn is the hard way :frowning:
My colleagues were all like this is the next amazon bla bla

Serves only IIs to get out really, glad I was true to my username on this one .-.

26

Is it not that you want to ā€˜get inā€™ before others have heard of it any hyped up the company?

27

Exactly that. The hype, the timing, the promo, the paid analysts serve only one thing: volume for cash out

28

That was not surprising. If you take a look at this slide in their presentation:

Screenshot 2021-10-28 at 11.50.50
Screenshot 2021-10-28 at 11.50.503330Ɨ1772 223 KB

You see that the crypto revenue is justā€¦ gone. The other sources remained the same. It was just because of the hype around Dogecoin in Q2, similarly to the GameStop/AMC hype in Q1 (visible as the yellow bar Q1ā€™2021).

This demonstrates that their business is not growing at the promised pace with the absence of extraordinary events like the above. That correction was a necessity. Their expenses are too high and their revenue is not stable.

Furthermore, they project that they will acquire 660,000 new users in Q4. Thatā€™s below 7,500 users per day on average. I remember Trading 212 quoting they had 30,000 funded accounts per day before they closed in January. And Robinhood should be at least an order of magnitude bigger than T212. Who knows.

29

Looking at the stock price since IPO - my brain is like:

Yes. I know.

Disclaimer: I donā€™t own any shares of Robinhood <3

30

Me too, but at this price, I am starting to think it might be worth it. Iā€™ll be watching the stocks and wair for it to find its bottom, and Iā€™m planning to buy some.

31

PFOF is on the way to be banned in US, or at least the political/regulatory actors are talking about that. That rumors contributed also for the HOOD downturn.

If you intend to enter in HOOD, be careful about the potential PFOF ban. :wink:

32

I think they need to change the rules - if an order doesnā€™t get executed within a reasonable timeframe, say half a trading day, or two auctions, then you should be allowed to be approached by brokers taking a cut of the spread by PFOF if you accept the terms.

33

Screenshot 2023-09-08 at 18.28.25

Did Trading 212 and its 2mn clients leave the the UK without me noticing? :rofl:

34

Still in the UK. Still the same office space :joy:

35

$HOOD All time high! Double beat.