Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Munger says retail trading firm Robinhood getting comeuppance

Stock Markets Apr 30, 2022 03:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

OMAHA, Neb. (Reuters) - Berkshire Hathaway (NYSE:BRKa)'s vice-chairman Charles Munger said on Saturday that retail broker Robinhood Markets Inc (NASDAQ:HOOD), which is trading near a record low, was getting its comeuppance.

After a peak in 2020 in trading volumes, Robinhood posted a 43% fall in first-quarter revenue earlier this month as transaction volumes declined across asset classes amid poor performance of shares. The company said it was laying off 9% of its full-time workforce.

"Look what happened to Robinhood from peak to trough, wasn't it obvious something like that was going to happen?" said Munger. "When it came out and went public and everyone went gambling... it was disgusting... Now it's unraveling, God is getting just."

The firm was at the center of the retail trading frenzy when investors used the platform last year to pump money into shares of so-called meme stocks, including GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).

Shares of the Menlo Park, California-based firm were sold in its IPO last July for $38 apiece. They closed on Friday at $9.80.

Robinhood did not immediately respond to request for comment.

Munger says retail trading firm Robinhood getting comeuppance
 

Related Articles

Germany stocks lower at close of trade; DAX down 0.31%
Germany stocks lower at close of trade; DAX down 0.31% By Investing.com - Jul 04, 2022

Investing.com – Germany stocks were lower after the close on Monday, as losses in the Retail, Construction and Technology sectors led shares lower. At the close in Frankfurt, the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Don Gamestop
Game_Over_Hedgie May 03, 2022 12:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pump and dump?
Raymond Pasillas
Raymond Pasillas May 01, 2022 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love Robinhood.
akljsdf askldf
akljsdf askldf May 01, 2022 12:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mundo is right, let's hope hood can achieve bankruptcy
James Franigan
James Franigan Apr 30, 2022 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hindsight is always 20/20. Tell me Mr. Munger, did yiu have the same hindsight when tou bought Activision or was it inside information?
Meru Pet
Meru Pet Apr 30, 2022 3:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Old guys are always right
Sabi Sab
SabiSab Apr 30, 2022 3:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What Munger had done with BABA, I don't trust him anymore.  LOL!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email