Pandemic gambling steam was going to run out eventually, but with $6B cash cushion, gives them a lot of time to figure out a long term strategy or get acquired by a traditional brokerage looking for a youth channel.
They have to keep that $6B almost entirely in reserve as collateral to avoid another GME. Why would you say stuff like this on a public forum when you have no idea how that industry works?
That is an insane drop. What is going on? Are they being outcompeted or simply not making money? Is their business model (being an easy to use broker for little people) simply not good?
I started trading on RH in 2019. They make investing simple and approachable for someone who like me who knew the basics and just wanted to play around a bit with some spare cash.
But after a couple years when I want to start taking it more seriously, their platform has failed to grow and improve. In the three years I've used them, I can't think of a single new feature they added that I use. Meanwhile, there are plenty of things I'd like. For example, it's beyond ridiculous that price graphs don't have their axes labeled. When selling stock, it's always FIFO, so I can't choose which lots to sell to optimize tax liabilities.
The problem is that I have a hard time leaving because their margin rates (~3%) are so damn good compared to the major players (8% or higher).
There aren’t offering anything new and even frontrun their customers. And with the GameStop fiasco, I think a lot of people realizes it was a bad business model. I don’t think they will be able to recover. It will drop even more if a recession ever hits.
Went from being the golden child of /r/wallstreetbets (literally every portfolio screenshot was of robin hood) to being villainized due to suspicious circumstances regarding locking people out of trading Gamestop "for their own good." Now any screenshot of robin hood is ridiculed.
The entire market had a similar drop this week (especially today) and has been slow-burning for the last three months, so. Take it with a grain of salt.
toomuchtodo|3 years ago
ltbarcly3|3 years ago
throwaway4good|3 years ago
Sohcahtoa82|3 years ago
I started trading on RH in 2019. They make investing simple and approachable for someone who like me who knew the basics and just wanted to play around a bit with some spare cash.
But after a couple years when I want to start taking it more seriously, their platform has failed to grow and improve. In the three years I've used them, I can't think of a single new feature they added that I use. Meanwhile, there are plenty of things I'd like. For example, it's beyond ridiculous that price graphs don't have their axes labeled. When selling stock, it's always FIFO, so I can't choose which lots to sell to optimize tax liabilities.
The problem is that I have a hard time leaving because their margin rates (~3%) are so damn good compared to the major players (8% or higher).
nowherebeen|3 years ago
yhoneycomb|3 years ago
lotsofpulp|3 years ago
It is fine, it is just a low marginal commodity business not likely to achieve the grandiose valuations and size its investors expect.
shakezula|3 years ago
cwilkes|3 years ago
Which means that a 4 year stock grant worth $700k then got you 10k shares. That’s now worth $100k