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Munger says retail trading firm Robinhood getting comeuppance

Stock Markets Apr 30, 2022 03:25PM ET

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Munger says retail trading firm Robinhood getting comeuppance

© 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.

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Comments (6)

Game_Over_Hedgie May 03, 2022 12:03PM ET

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Pump and dump?

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Raymond Pasillas May 01, 2022 2:15PM ET

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I love Robinhood.

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akljsdf askldf May 01, 2022 12:49PM ET

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Mundo is right, let's hope hood can achieve bankruptcy

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James Franigan Apr 30, 2022 4:54PM ET

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Hindsight is always 20/20. Tell me Mr. Munger, did yiu have the same hindsight when tou bought Activision or was it inside information?

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Meru Pet Apr 30, 2022 3:51PM ET

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Old guys are always right

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SabiSab Apr 30, 2022 3:34PM ET

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What Munger had done with BABA, I don't trust him anymore. LOL!

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