Robinhood is the US trading platform of the US people. Their ethos is that investing should be for everyone
Background: Robinhood is the US trading platform of the US people. Their ethos is that investing should be for everyone. It raised nearly US$2 billion to be valued at a massive US$32 billion.
What happened: Since then, it's been a bit of a downhill ride. Monthly active users on Robinhood dropped by 2 million since the previous quarter.
What else: On top of that, Robinhood reported a net loss of US$423 million and YUP you guessed it...shares tanked around 14% on the news. Shares in the company are now down around 77% from their all-time-high in August last year.
💡If businesses want their customers or app users to stick around long-term, they need to create a product that's designed to be long-term.
💡For a long time, Robinhood attracted app users that were short-term investors...ya know, the 'pump and dump' kind. But with its active users declining, Robinhood knows it needs to change its tactic.
💡Now, the company is building a product suite that's intended to support long-term investing. That's things like retirement accounts, deposit and withdrawal accounts and instant debit cards. Fingers cross for the R-train this works.
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