Robinhood Misses The Mark


Robinhood Misses The Mark

By: Yerix Fuentes, Journalist

Robinhood is racing to raise $1 billion from existing investors, ahead of plans to reopen trading of GameStop and other ’90s nostalgia stocks. If true, however, it would mean that Robinhood was willing to risk a massive loss of users, which would then decrease the inherent value of its order data.

Robinhood prevented its users from buying shares or call options on a bucket of stocks that had been shorted by funds and bid up by Reddit and TikTok traders. Several other trading platforms also put some limits on such activity.

 If Robinhood woke up yesterday with short-term issues, it should have said so to users quickly, clearly, and apologetically. Not doing so was a massive failure. And if it were anything else, well, then that would be even worse.