Robinhood’s Stock Has Plunged and Its Traders Are Leaving | WSJ What Went Wrong
ฝัง
- เผยแพร่เมื่อ 30 ส.ค. 2022
- Robinhood was one of the most valuable startups in Silicon Valley before its IPO. But now, its share price is down around 75%. WSJ’s Gunjan Banerji explains how Robinhood fueled a meme-stock craze and why it’s now struggling.
Illustration: Preston Jessee
What Went Wrong explores the challenging conditions and decisions that led to a company's downturn.
More from the Wall Street Journal:
Visit WSJ.com: www.wsj.com
Visit the WSJ Video Center: wsj.com/video
On Facebook: / videos
On Twitter: / wsj
On Snapchat: on.wsj.com/2ratjSM
#Robinhood #Stocks #WSJ
Love how they completely omit how Robinhood trade restricted meme stocks from retail investors to protect big hedge funds that shorted them.
because that would be libelous
@@MayorMcC666 ain't libel when it's facts
Exactly, bc WSJ, like Politicians, are in bed with Donor Class
Also, no mention of other brokers doing the same thing
That's what happens when the news media is for sale to the highest bidder.
The bad PR from how they handled meme stocks killed them. Removing the buy button was illegal and they should go under for it
Sold everything I had on robinhood and deleted the app that day. When a company handling your money tells you they can't be trusted, listen to them.
Yeah criminals
Everything I don't like is illegal!
@@spacetoast7783 Blatantly manipulating financial markets is illegal
@@ALC0LITE Manipulating how? Literally every interaction with a market or a public company influences shares.
So no mention about Robinhood trade restricted meme stocks from retail investors to protect big hedge funds that shorted them at all? WSJ is becoming a joke.
Amen
0
'tj
Yeah there criminals
Not only Robinhood restricted meme stocks it was halted almost everywhere
Why would they destroy their own reputation to help random other companies?
Maybe don't screw your clients by freezing their accounts and licking the boots of equity fund managers.
The users aren't the clients they're the product. The marketmakers who pay for order flow are the real clients. Remember if you get it for "free" you are the product.
👍🏼
@@kaymish6178 . How's that working out for RH you clown?
When did this happen?
@@spacetoast7783 the whole GameStop incident where hedge funds lost billions.
You guys not talking about the stop on buying meme stock from Robinhood just makes the whole video stink.
What happened was that it called itself Robin Hood but when push came to shove became Reverse Robin Hood, blocking retail investors from cashing in on the meme stock short squeeze to protect hedge funds.
It's very satisfying to see the company get a big middle finger from its customers.
Totally agree
Robbing the Hood.
After what they did with the meme stocks, i immediately sold and withdrew all my money from their service. They couldn’t be trusted.
Good move.
Yep, they were all too tiny to put down massive collateral on highly volatile stocks. This is why you should stick with established companies.
Same here
my MeMe StOcKs 😭😭😭😭😭😭😭😭😭😭😭😭
THeY shUt OfF My bUy bUtToN BuT I cOuLd STiLl SELl 😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭
You forgot to mention Robin hood temporarily halted the buying of gamestop, AMC, etc and only allowed them to be sold. Effectively assisting Citadel with their short
and she also forgot when Musk interviewed Vlad and asked if the dtcc was holding a gun to his head xD
? How could they halt it from being bought but allow it be sold? Who’s buying the shares if they can’t be bought in the first place? Your statement makes no sense.
Well people could still buy GameStop shares outside of Robin Hood, it’s not the only platform that exists for trading ? So it is very much possible that they could halt buying whilst allowing it to be sold.
THIS!!!! I removed all my funds shortly after this, they violated the law and nothing happened. GME/AMC weren’t the worst part to me, because Robinhood wasn’t the only brokerage to limit these securities. It was all the other stocks that they restricted, like SNDL was also expected to short squeeze that day. It pisses me off they got away with such clear cut case of corruption. The SEC showed itself to be nothing but a joke to the retail investors that experienced this injustice.
Terrible move on their end. No trust
I absolutely recommend Robertson Fadwa crypto to new traders who are struggling to make profits out of their crypto investment I was once in that situation until I was introduced to Fadwa crypto who in fact change my life,I began to make good profits out of my trades till date, best trader ever ........
We can all learn a thing or two from Fadwa his profit making skills is phenomenon. Thanks to his service I'm making more profit and getting rich..👍
Fadwa has elevated my crypto portfolio with his well thought out signals from 1btc to 3btc I’m so glad I’m a student of his program.
Fadwa is very sound in analysis and his service delivery is top notch. I am so grateful to his assistance which has made me a much better and profiting trader.
There are many things i learned From Fadwa Signal that helps me till date. l was able to increase my btc from 0.5 to 7btc
Wish they still showed the dislike count...
I'm sure many have disliked the video for them failing to acknowledge Robinhood's trade restrictions on meme stocks.
Under no circumstances should a broker do that
They simply protected the hedge funds
Edit: Thanks a lot for keeping the count guys, let's see if it keeps on rising until they acknowledge :D
The "Return TH-cam Dislike" Chrome Extension will show the thumbs down icon & count on TH-cam
127 dislikes at 17:34 UTC
Not only Robinhood halted trading almost all trading platforms restricted buying/selling
What could they have done differently to avoid that? Their clearing house was asking for more collateral than RH owned.
@@josephroman8931 Almost like the collateral on highly volatile stocks is huge, and small companies don't have that much liquid cash.
Robinhood founder & executives should be ashamed of themselves for helping Hedge funds & other Stakeholders when it was all fair & game during the Gamestop stocks crisis. I hope they fail
I don’t typically engage in active boycotts of companies, but I made sure to go out of my way to deter everyone I knew from using Robinhood. I closed out my account shortly after the scandal and have never looked back
So sad they left out the most important facts why people left.
What other stakeholders?
@@spacetoast7783 Who do you think, other stakeholders looking to short the stock. They got squeezed so hard, you could only sell your AMC among mems stocks at the time.
@@keithhahn2427 Why would they care about random traders who aren't connected to their company?
They lost a huge swath of users due to loss of confidence after they froze accounts to protect their larger firms.
Large firm? RH is tiny compared to established companies like BlackRock, Vanguard, Fidelity, and Schwab.
GameStop and AMC caught the eye of regulators you say? It sure did LOL
Yeah and they couldn't find anybody acting improperly.
Now with the recent economy, To get financial freedom you have to be making money while you're asleep
How? Please Shed some light, I am still confused. I am new to investing and I am open to Ideas
Well investing in stocks and crypto isn't a bad idea, a good trading system would put you through many days of success
1. Crypto
2. Stocks
These two are really profitable now.
It is possible to produce good investment success provided you're focused
Some of us tend to pay more attention to the shiniest position in the market to the cost of proper diversified
I'll tell you what happened. They stabbed their core customer base in the back and tried to help the billionaires.
Oh yeah they froze certain stocks that wallstreetbets guys needed to sell
Hello Mrs Clarissa the bitcoin trader is legit and her method works like magic I keep on earning every single week with her new strategies.....
Wow I' m just shock someone mentioned expert Mrs Clarissa I thought I'm the only one trading with her
She helped me recover what I lost trying to trade my self
I'm from Australia and I have been Investing and earning massively with the help of Mrs Clarissa, all thanks to her
Hello 👋
How favourable is the market now . I want to invest in cryptocurrency
Can I start with $3000
I'm from Germany🇩🇪 I used to take loan from the bank for surviver but after trading with expert Mrs Clarissa she changed my financial status for real I'm now a creditor not a debtor anymore..
The comments here about Robinhood restricting meme stock trading are ridiculous - Robinhood uses a 3rd party clearing firm that has specific margin requirements. When the stock prices rapidly fluctuated, trading had to stop for those margin requirements to be met.
Robinhood lost a ton of money from this.
And now they've lost a ton and customers and will potentially go out of business... because capitalism.
@@ask_why000 They probably won't go out of business. They're not doing well because the massive 10+ year bull run is now over and a lot of the younger crowd that trades there is running out of money.
Not sure what this has to do with capitalism
Not a single word about the GameStop disaster
Loss of trust is number one, lots of competitors like WeBull, FTX and M1. Established competitors like TD implementing more features. And now the market is in a downturn for the first time for many of the novices that started on Robinhood.
TLDR: Loss of trust, competition, and a down market for novice investors; their primary clients.
I came here to learn how to invest after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k, somehow this video has helped shed light on some things, but I'm still confused, I'm a newbie and I'm open to ideas.
Investing in stocks and crypto is a good idea, a good trading system would put you through many days of success.
It is possible to produce superior performance provided you do something different from the majority. However most of us tend to pay more attention to the shiniest position in the market to the cost of proper diversification.
Having monitored my portfolio performance which has made a jaw dropping $370k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market.
@@wilsonbrown8993 Interesting, I have a lump sum doing absolutely nothing at all in my bank account, I wanna get something started with it. You seem to be doing excellent for yourself, how do you achieve this?
@@louisclifford9874 Exactly, the trick is to diversify your investment, don't panic when everyone else is and invest consistently.
Well that was a disappointing, misleading video … come on WSJ, I expect more from your journalism. What a shame. We all know the real reason why they fell… not telling the full story of what went wrong is unacceptable.
Clearly I’m not the only person who feels this way…
What's the reason?
@@spacetoast7783 2 words:
Meme stock.
@@01jbeals Two words don't answer my question.
@@spacetoast7783 i understood it. Are you in robinhoods payroll?
@@bencastro921 I'll answer your question after you answer mine
Robinhood removed the buy button.. that’s what happened to Robinhood
That IPO image of the two founders was all you needed to know they didn’t have the depth to understand this business. They cast themselves as saviors of the little guy, but their hubris actually doomed them.
Bc they choose investors over its customers
Aren't their customers investors?
That's every company ever. You have a duty to generate profits.
The way they handled meme stocks and how they seemed to walk away from the small trader to the side of big traders was the tipping point . I lost $10k on their stock
This is what you get for just blindly following anyone with anti-establishment branding.
The CFO looks like he's 17
It wasn’t only Robinhood. A lot of others brokerages got involved in halting the trades.
Yep, they were all too tiny to put down massive collateral on highly volatile stocks. This is why you should stick with established companies.
So it is shame for them for benefiting on small pennies from transactions but when banks benefit the same way from card transactions is perfectly fine. How hypocritical is that
They ripped me off on big trades on multiple occasions, and made me relook at all my fairytales
What a relief! The regular person isn't allowed to participate in The Rich Man's gambling! That would be absurd!
They still around? I stopped paying attention when they blocked people from buying GameStop stocks.
*Excellent video,i'm adding a bunch of stock to my current holdings for the long run,do you think these stocks are long term worthy,i've set aside $250k to begin and i'd love to avoid as many mistakes as i can*
i saw a post about mrs Gwen stacy on youtube also last month,although i doubted but decided to give her a trail of $2000 and i was able to recieve $9,890 in a week,now my family is enjoying from that decision,.thanks to mrs gwen........
honestly the right information is what we need to succeed.i believe the benefits of a successful trade
@@youngstan5444 you're right!bitcoin is so unpredictable,trading and making profits is the safest choice.only few people know about this huge opportunity
Ah yes I am also a spammer account but I have no money to invest in this scam comment chain.
@@kphantom this is no scam chain comment dear....wisen up this is a good time for investment
At 6:45, is Fidelity National Financial the same as Fidelity Investments ?
hey seem unrelated and Fidelity Investments is private as far as I know.
Trading on robinhood is like entering a Moto GP with a Ford Focus.
Hey Robin Hood is a great trading app old money is just trying to scare new money I wouldn't pay any attention to this video honestly
Why omit one of the important point which is turning on their own user base when making a business report?
Did anyone catch that Fidelity National Financial is not the same as Fidelity Investments? Fidelity Investments is a non-public company and doesn't have a stock chart. Nice reporting WSJ.
I thought it was because robinhood stopped trading with GameStop and other meme stocks? The people lost trust in them.
You missed the main reason investors turned away. The Comments section speaks the truth.
Where? All the top comments I see are wild conspiracy theories.
@@spacetoast7783 more like conspiracy fact. Watch Tenev trying to explain why he stopped investers from buying more gamestop. Loss of trust killed this app.
@@ultimatedx3550 So what's your theory, sweetheart?
WSJ made a 7 minute video about what went wrong WITHOUT SAYING A THING ABOUT THE ACTUAL REASON IT WENT WRONG
Mrs Sonia is legit and her method works like magic I keep on earning every single week with her new strategy..
Please how do I start with Mrs Sonia??
I'm from Germany I used to take loan from the bank for surviver but after trading with expert Sonia she changed my financial status for real🇩🇪
A friend that I referred to her just received $7,050 profit after 10 days of investing..... became jealous.. lol
Trading with an expert is the best strategy for newbies and busy investors who have little or no time to monitor trade
Please how do I get in touch with MRS Sonia
This report failed to mention the major reason why retail traders left which was the halting of trading on games top and others. It just felt shady not to mention the explanation robinhood gave was boguss and nebulous. To conclude they lost confidence and trust
you have just described frontrunning by HFTs such as Citadel, which (once the regulators catch up) should be illegal.
👍 glad to hear it, I've had shorts open for a year :)
I've been investing in stocks for 15 years, all these comments about Robinhood freezing buying to save hedge funds show why people should actually learn about the stock market before complaining about how it works. This isn't some grand conspiracy. Look up the Depository Trust & Clearing Corporation and its role in settling transactions.
It feels like Robinhood and similar apps gave teenagers a bunch of fireworks and said, "here you go, have fun" without actually explaining that pointing them at your own face is a bad idea.
My Robinhood account has been review for three months by now.They don't allow me sell or deposit or do anything and they didn't give me any reason for this.Are you have same problem?
Totally cool with P2OF if it is within reason. But freezing trading when there is a conflict of interest is no good.
What trading was frozen due to a conflict of interest?
This goes along the way with how lot of news outlets now a days works on creating news than delivering the news, lot of this is not specific to Robinhood if you put all trading firms under the microscope.
They didn't charge a fee, they just gave you a worse buy/sell price and made much more money from that. I hope they'll get busted for that too.
I left when they turned off the BUY button on GME.
With all due respect at least with Robinhood, you actually buy actual stock of a company, rather than what we have in the UK, like Etoro and all the other CFT's businesses whereby your betting on a stock to rise or fall. And all nonsenses that go along with that.
Great commentary from Gunjan but sub-par audio quality on her shots (and not great video quality inn the same shots either)
2 things killed it.
1) Restricted trade of meme stocks to protect hedge funds.
2) No Roth IRAs. No one is going to want to seriously trade on your platform without those. I didnt have time to wait while they maybe catch up.
Credits to Jon Stewart for raising awareness on this issue.
I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN...I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED... CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?
Same here, My portfolio has been going down the drain while I try trading,l just don't know what I do wrong
I strongly advise you against self trading, it's really dangerous and had brought so many investors down, you need someone with the knowledge and strategies, someone dedicated to the crypto market business, and I will strangely recommend expert, Mrs Melissa
Robinhood literally steals from the poor and gives to the rich. Criminals took away the buy button.
Robinhood is the worst
I keep clicking these videos only to later realize it’s from WSJ and be disappointed by a joke of a journalism. Never again.
Uhhhhhhh it was hit hard because retail investor's pulled out from their app because of the crime they were apart of. Simple as that
U.S. stock index futures were lower on Thursday as news of another COVID lockdown in China revived concerns about a slowing global economy.My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
Robinhood is the truth plain and simple.
All those meme stocks Robinhood popularized, are killing market makers causing high slippage and volatility to it and other stocks. While at the same time, in reality, being a net zero sum game at best.
I had a regular account and they charged me $55 dollars twice at the end of the year. No one's talking about this. I only caught it because I check my bank account on a regular. It happened in January of this year.
Real simple, Robinhood not know better than any other trading brokers. They paused the memes trading midday. Customers did like that plus their customers service is very poor.
I applied to Robinhood months ago and got a no reply a few weeks ago. I'm glad I didn't work for this company.
I'm done sitting tight for the award advance since i acquire $23,000 every 12 days of my investment.
I'm thinking about investing also, any suggestions?
he is also my personal trader crypto analyst and account manager. With an initial investment of $7000 it yielded returns of $25000 within 2 weeks of trading. I was really impressed with the profit actually.
Woo! His good name and work has been everywhere I feel more confident investing with him..
As a first time investor I started trading with him with a thousand bucks. My portfolio is much more that now within just weeks of trading with him..
I started trading with him recently $300,000 profit in 4 months and still counting He's a crypto trade King I trust.
THIS VIDEO IS NOT CORRECT! ALL BROKERS MARKUP THE PRICE OF A STOCK/BOND!!!
THAT'S HOW THEY MAKE MONEY!!! YOU NEVER GET THE EXACT PRICE YOU SEE IN
A "PRICE qUOTE". TO LOCK IN A PRICE YOU USE A "LIMITED ORDER" WHICH IS THE PRICE
YOUR WILLING TO PAY.
A little bit of a travesty of the truth from WSJ who forgot to mention Robinhood at some point did forbid users to buy those shares and tried to force them to sell under the pressure of large investment banks. One can only assume WSJ does not want to cut its bridges with those investment banks.
Error in "Share prices of online brokerages" chart at 6:46. "Fidelity National Financial Inc." is not Fidelity Investments, which is privately held and does not have a publicly-facing "share price."
It was Schwab vs Robinhood, not fidelity
Should I move my cash and stocks out from Robinhood?
Whats a good alternative?
Last year I sold a substantial proportion of my stock portfolio and also sold some real estate so I could diversify into crypto.
I am very happy that I made the move. The stock market has been hit pretty hard.
Never put all your eggs in one basket, unless you want busted eggs
Crashes are best time to get rich.
Take care.
Strap into crypto these are times wealth are created
@@austinpeter6116 I agree
I wanted to trade Crypto but got confused by the fluctuations in price
So no mentioning of how trades made via Robinhood was never really connected with the market?
Americans after seeing this. Is there a thing called limit orders??😂🤣
Platforms are based on trust. If that is lost... there is no value. I loved their interface and their convenience. I was disappointed with them selling info on retail investors .After gamestop I was done. I understand the founders were under pressure from their investors. Your customers are more important than your investors. Couldve been something great if they thought long term. Democratizing investment grade assets. Not milking retail investors.
If only there investors had any forethought at all...
Its fall began after it halted trade on meme stocks! It started to work for its wall street masters rather than the small retailer
All of a sudden, everyone knows Genslers' name
Retail Traders are not #Robinhood customers, Citadel is. Your trades, info, and data is the PRODUCT sold to #Citadel
There's a reason they're one of the richest companies in the world. AI learns from your behavior and trades against some orders they process. This is one of the biggest rackets in our economy, the corruption is in full display.
THE BIG LIE at the heart of this is 3:30. Robinhood was not so so easy to use. It literally blocked people from making trades that it didn’t like. Shame on you WSJ. If this sort of “journalism” continues I will forever leave your platforms.
Do you have any examples of this happening?
Once Fidelity started changing their UI to be more like Robinhood. I haven’t gone back to Robinhood since.
Can I break it to you gently that "one" is a singular noun?
One in four shares is this, that, or the other thing.
The other three aren't.
Get it?
It's not hard if you just try thinking.
I was going to sign up for robinhood till the game stop scandal. Then I lost all faith in them.
Which trade company u guys trade or trust? Thinking of leaving Robinhood
Tradestation.
They need to get rid of the pattern day restriction.
Switching off the buy button
Anyone else notice that their CFO looks like Brad from The Middle?
Thousands left after they took away integration with Intuit Mint 🤷♂️
It went how many IPOs go. I had some extra cash and put it in Robinhood stock at its low, and I am still in the green even after this past week's beating. I'm neither bullish nor a bear on it, and I completely understand why it is an easy company to talk bad about. Who knows, maybe I'll get lucky and another company will buy it before it drops down to my take my gains and go minimum percentage.
Robinhood introduced me to trading. But the company gives in to every political circumstance. They should have kept their information giving to a minimum because ultimately they gave their customers information and it was used against it's traders basically bankrupting them. I like Robinhood but the love isn't there. We should be able to trade with who and where we want to trade but many platforms have shown that we do not live in a free world. There is no freedom of speech, there is no freedom period or justice as we are robbed of these freedoms by their political biases. We never said we agreed.
Can’t download in excel, can’t find out realize / unrealized win loss. Secretly steal money from trader since you can’t check
they made investing as easy as playing a video game. Investing should not be that easy.... that is how people lose their life savings. Rather than taking time to do research on what they should invest in and actually THINK about it they just push buttons on a screen like a carnival side show.
They did not mention how they froze the trading of GME , teamed up with shitadel and screwed their customers over ..
It's simple : They sided with big hedge funds against retail traders and investors and people found out about those rats in Gamestop case. So They better go bankrupt
I feel like they manipulated the Doge hype as well
Responsible investing does not involve frequent trades for the average investor. So I wouldn’t trust any company which generates revenue solely off of trading volume.
The size of the trade doesn’t matter, since they are just profiting off minor timing differences in the price. Basically, they make money by micro-scamming unsophisticated investors who would make more frequent, smaller trades than an institutional investor.
Your first statement is dead wrong. People make their livings off of day trading. 😒
It's interesting how NFTs have picked up the ball on this without needing Wall Street.
Good for the people, good for the market.
How are things now ?
The stock market is and has always been the best place to make substantial income. Which is why I still find myself pumping funds into the Stock market and trading aggressively, Away from all the distractions around. I still make profits from my investments, made $260,000 last year.
Hey I find myself in a fix right now and I need proper ad vise. I have a lump sum in my savings account literally burning a hole in my pocket . I wanna get something started with it but I need help on where and how. You seem to be doing excellent for yourself. I could use some help here.
Agreed !! I am a penny stock trader and I leverage on the volatility of the market for significant returns rather than holding and loosing value to the volatility of the market
Actually there is no particular sector i focus on. I just copy trades from US professional trader Camille Anne Hector. I met her in a seminar in NY and we talked a lot, i have been copying her trades signal ever since then my portfolio has grown at a tremendous pace and she has been very consistent.
By following trades do you mean copying her trades, as is done in etoro? Are you giving her your money or the money stays in your account? I have heard about copying trades but have not looked into it but i have an idea of what it is
my money stays right in my account. That's the ideal for copy trading. My account only mirrors her trades in real time. She is well known for what she does, when you search her name on your browser, her website is like the first thing that pops up. On there you can shoot her a mail.
Serious financial pundits know exactly why Robinhood is struggling. Hard to explain to lay people--the Nottingham Effect.
What does this video have to do with heat transfer?
Dear Tenev and broom head,
You should have been banned and hit with a class action lawsuits when you freeze again the sell button on the SNL night featuring musk.