Robinhood's grim future: stock market crash, retail trading collapse

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Robinhood struck it rich by turning stock trades into a game. But now its own stock has plunged 80% — and it needs to start copying its old-school rivals if it wants to survive. By robinsreport.

that cater to retail investors, can design a platform that centers on the user instead of on the brokers that pay to complete its customers' trades. A more user-centric platform would realign Robinhood's profit engine so that the company would make money when its customers made money — meaning it would likely advise its clients to invest in a safe way that wasn't as risky as retail trading.

And from one vantage point, Robinhood's business model was less about democratization than it was about capturing a young, less experienced market of investors. For a while, this worked. But younger generations, both millennials and Gen Z, simply have, and without another frothy meme-stock craze, Robinhood probably can't compete with larger firms whose customers have much more money to play with.

Eventually, Tierney said, after an episode like the meme-stock craze, retail traders realize that it's quite difficult to make money in financial markets."Nonprofessionals trade too much and mostly aren't very good at it," he added. And because Robinhood only profits when people trade, the company can't make money. This could be part of the reason it lost $423 million last quarter.

 

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robinsreport None of this is a game!!!!

robinsreport No it does not. What they need to do is aggressively upgrade their crypto UI and start looking to compete with $COIN and CRO APP.

robinsreport must have Russian influence.

robinsreport If robinhood changes its business model... it will be delisted

robinsreport A bunch Of cowboys.

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