[ad_1]
Robinhood’s debut on the Nasdaq Inventory Trade on Thursday noticed shares sliding almost 10% to commerce round $35 a share after the fintech agency had priced its IPO at $38 a share final night time. The worth motion trimmed market capitalization by roughly $3 billion for Robinhood that’s now valued at $29 billion.
Josh Brown’s feedback on CNBC’s “Halftime Report”
Robinhood has been within the headlines ever for the reason that meme inventory phenomenon caught fireplace this 12 months. With reputation got here criticism that continues so far, together with from Ritholtz Wealth Administration CEO Josh Brown, who mentioned on Thursday it was online gambling and never funding.
“Loads of this began out as regulatory arbitrage. The neat trick was getting large enough, quick sufficient earlier than anyone knew what was taking place. And so they simply paid an enormous wonderful associated to a few of that regulatory arbitrage. Perhaps they’ll clear up their act. However ultimately, this isn’t an investing enterprise, that is on-line playing,” Brown added on CNBC’s “Halftime Report”.
Stephen Weiss shares his disappointing expertise with utilizing Robinhood’s buying and selling app
Throughout the identical interview, Stephen Weiss of Quick Hills Capital Companions mentioned Robinhood was not a disruptor and that he didn’t see anything magical about Robinhood. Weiss additionally shared his expertise utilizing the corporate’s commission-free buying and selling app to purchase Bitcoin.
“I wired cash on Wednesday morning. It didn’t get there allegedly till the subsequent week. My order from the earlier week was executed per week later. It’s not a greater app than some other monetary app on the market. It simply caters to a distinct clientele,” Weiss added.
Additional criticism on Robinhood is expounded to its cost for order stream enterprise mannequin, which many are speculating that SEC Chair Gary Gensler would possibly determine in opposition to in some unspecified time in the future. The fintech agency presently generates about 80% of its income from cost for order stream however intends to diversify its sources of income sooner or later, as per the CEO Vlad Tenev.
The publish These two execs will not be curious about Robinhood IPO – right here’s why appeared first on Invezz.
[ad_2]
Source link