But the day after GameStop reached its peak, Robinhood abruptly restricted trading to some meme stocks, claiming they were forced to do so by a liquidity crunch, Wall Street regulations and limit of factory clearing. The restrictions sent stocks plunging, causing litigationcongressional hearings and an investigation by the Securities and Exchange Commission.
“A new generation has turned the act of investing into a mass movement,” says Robinhood. in a statement on Tuesdays about last year’s market events. “We never want our customers to be surprised by transaction restrictions again,” it added, noting that it has enhanced its risk and compliance infrastructure, among other things. . On Wednesday, SEC Chairman Gary Gensler issued brief statement said the agency was still working on recommendations to make the market “fair, orderly and efficient as possible”.
Robin Hood hero said on Thursday that it lost $3.69 billion last year, including $423 million for the last three months of 2021. Revenue for the quarter grew 14 percent, to $363 million, compared with the same period in 2020. That year, the company earned $13 million, including seven million dollars in the previous quarter of that year.
“We had an important year, nearly doubling the number of customers on our platform and making significant investments in our team and infrastructure to support growth,” said Vlad Tenev, co-founder and executives, said in a financial press release. “This year, we will expand our product ecosystem.”
Analysts predict the company will lose more than $300 million in the fourth quarter.
Shares of Robinhood fell 15% in aftermarket trading on Thursday and have lost about two-thirds of their value since it went public this summer, fueling rumors that it could become a takeover target. Prolonged problems from the meme stock rally – and related trading restrictions – have worsened the outlook, but the company received good legal news on Thursday ahead of its financials. me.
https://www.nytimes.com/2022/01/27/business/robinhood-meme-stocks.html Robinhood Faces Problems That Last A Year After Meme-Stock Mania