Munger says retail trading firm Robinhood getting comeuppance

The emblem of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Road after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021. REUTERS/Andrew Kelly

OMAHA, Neb., April 30 (Reuters) – Berkshire Hathaway’s vice-chairman Charles Munger mentioned on Saturday that retail dealer Robinhood Markets Inc (HOOD.O), which is buying and selling close to a file low, was getting its comeuppance.

After a peak in 2020 in buying and selling volumes, Robinhood posted a 43% fall in first-quarter income earlier this month as transaction volumes declined throughout asset lessons amid poor efficiency of shares. The corporate mentioned it was shedding 9% of its full-time workforce. learn extra

“Look what occurred to Robinhood from peak to trough, wasn’t it apparent one thing like that was going to occur?” mentioned Munger. “When it got here out and went public and everybody went playing… it was disgusting… Now it is unraveling, God is getting simply.”

The agency was on the middle of the retail buying and selling frenzy when traders used the platform final 12 months to pump cash into shares of so-called meme shares, together with GameStop (GME.N) and AMC Leisure (AMC.N).

Shares of the Menlo Park, California-based agency had been bought in its IPO final July for $38 apiece. They closed on Friday at $9.80.

Robinhood didn’t instantly reply to request for remark.

Reporting by Carolina Mandl
Modifying by Nick Zieminski

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