The Robinhood Markets (NASDAQ 🙂 trading app posted earnings after Wednesday’s close and the stock fell more than 10% on Thursday.
It was a sad day in the investment world when the Robinhood stock trading app went public. As I have written several times before, I think this business is an absolute disgrace and I fully agree with Charlie Munger, who said it was “in contempt”.
Robinhood belongs to the Hall of Shame alongside e-cigarette company Juul and Oxycontin maker Purdue Pharma for pushing products that hurt people.
The whole Robinhood business model depends on turning our markets into, as Munger put it, “gambling halls” – encouraging people to speculate madly in day trading options and worthless garbage that I have. nicknamed Doggycoin () and GameStink ().
The Robinhood revenue report only reinforced my point of view. To understand what a “playroom” application is, look no further than this table:
Robinhood Earnings Report
Tearing up your customers’ faces can, unfortunately, be a really good deal – just look at most multi-level marketers like Herbalife Nutrition (NYSE 🙂 and predatory lenders like World Acceptance (NASDAQ :). But nonetheless, I would avoid the Robinhood stock …
America’s Largest Digital Media Company
I was so happy to read this story in the New York Times about my old friend and business school classmate Ric Elias: You’ve never heard of the biggest digital media company in America. What an incredible story! Extract:
Lindsey Turrentine first heard of Red Ventures last fall, when she purchased venerable tech news site CNET, where she is senior vice president of content. She sat at her kitchen table in Berkeley, Calif., and started frantically searching on Google to find out what it was.
“His experience was not uncommon. People working for Lonely Planet travel guide, The Points Guy travel site, and health and medical information site Healthline were also taken aback in recent years when Red Ventures bought multibillion dollar special interest publications. a dollar shopping spree. “
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