WeWork Redux: Another high flying unicorn project blows it with investors because they, like so many Silicon Valley startups, moved too fast to put out the fires they started with inattention to bad practices - such as 10 to 1 leverage for novice investors, and selling order flow to an unscrupulous hedge fund shorting the issues which they had privy first at the faucet knowledge of.
$HOOD is as spurious as WireCard, Uber, WeWork, Theranos, you name it. There are dozens of these companies which need to join the sock puppet from 2000 on the trash heap of bad ideas.
Robinhood anticipates first-quarter revenue of less than $340 million, down 35% compared with 2021. Wall Street expected $448.2 million in revenue for Q1, according to FactSet.
Monthly active users fell to 17.3 million last quarter from 18.9 million in the third quarter.
Robinhood is about to face its toughest comps in the first and second quarters of 2022 following its record year in 2021 from events like the GameStop short squeeze.
I’d love to know how many novice investors were bankrupted and who owe $HOOD money for over-margined wrong bets?