How on earth is Robinhood worth 5B?
Someone help me understand. A couple points:
- they’re going up against huge brokers already (e*trade, ameritrade)
- from the outside it seems like robinhood is used mostly by millennials “playing” with stocks, who will switch to the larger brokerages with more features once they decide to invest seriously
- other large brokers are already looking into making “commission-free” versions of their platform to compete
Full disclosure, I am a millennial who uses robinhood and loves it. I just can’t picture myself using it when I actually have a lot of money to invest seriously.
Is it just hype, or is there logic behind the valuation?