I just realized 15 minutes ago that Robinhood ($RH) is actually a public company and its earning release is next week. My plan is to load on puts. Basically,
- They released a press announcement that China tariffs wouldn’t affect them. Well, duh, how would China’s tariffs on physical products affect a virtual platform using virtual money?! I think they are preemptively hiding something.
- Their business model is basically letting people trade commission-free (attracting the poor) but the orders are packaged and routed to HFT firms and clearinghouses (for a fee) so that market makers can take full advantages of you. Any platform that takes advantage of poor idiots should not make a lot of money in long term.
- Early comments mentioned that they run their business on Restored Hardware, I think this is another reason to short them. No modern fintech should run on old hardware, regardless of their view on environmental sustainability.
Disclaimer: Consult your financial professional before making any investment decision.