Robinhood is a gambling app

Google
Singhiskin

Go to company page Google

Singhiskin
Aug 20, 2021 28 Comments

Some startling facts:

Revenue from trading : 451M

Revenue from crypto (mostly doge gambling) : 233m

Revenue from options (gambling) : 161m

Revenue from equities (investing sort of) : 51m

Average money in a funded account : around 4k

Median money in funded account: probably much less than 4k

Revenue from equities is flat or close to flat y/y. So basically all their growth is coming 20 something speculators.

How the f is this the investment platform of the future. Seems like it's clients use Rh for gambling and fun.

I would rate the stock a strong sell.

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TOP 28 Comments
  • Stripe
    fCes02

    Go to company page Stripe

    fCes02
    And so other trading apps are not gambling apps because, they have fees and require folks to be worth a lot more than 4K?

    So only the rich should have access to the market huh?
    Aug 20, 2021 1
    • New
      dFHU03

      New

      dFHU03
      Because their main source of income is not dogecoin and option pfof, which is very sustainable lol
      Aug 20, 2021
  • New
    luckyButt

    New

    luckyButt
    Shouldnโ€™t it be a strong buy then?
    Aug 20, 2021 2
  • Twitter / Eng
    ufsbwhs

    Go to company page Twitter Eng

    ufsbwhs
    ๐Ÿฅฑ nothing new here, another boomer thinking only his investment is investment and everyone else is "gambling"
    Aug 20, 2021 2
  • Retail brokerages are basically all about gambling. If you want to invest, buy low cost ETFs or Vanguard funds and hold until you retire
    Aug 20, 2021 3
    • Google
      Singhiskin

      Go to company page Google

      Singhiskin
      OP
      Fair enough. But conventional wisdom is that upon losing money ppl stop doing stupid things. So over time Rh should lose users as they lose money on the average..
      Aug 20, 2021
    • Google / Eng
      chnou

      Go to company page Google Eng

      chnou
      Is that true for gambling addicts? Don't casinos make most of their money from a small number of heavy gamblers who lose a lot of money very gradually over time?

      I don't know whether the same addiction effect holds here, but it seems plausible.
      Aug 20, 2021
  • Uber
    bsad43

    Go to company page Uber

    bsad43
    Out of curiosity, if you charge no commissions, how do you make money from trading etc?
    Aug 20, 2021 6