You would think if you were a PM at Robinhood you'd be tempted to put a confirmation on buying Hertz: "Hertz is bankrupt. Type their implicit equity value per share in the box below to continue."
(This would be illegal, because laws believe they protect retail from brokers.)
(This would be illegal, because laws believe they protect retail from brokers.)
That would probably be an internal argument, too.
PM A: We should do this to protect our users' net worths.
PM B: ... Should we though? Is that the job to be done of Robinhood?
A: But we're a brokerage.
B: We're a gaming company. Blizzard doesn't tell Leroy Jenkins he's dumb.
PM A: We should do this to protect our users' net worths.
PM B: ... Should we though? Is that the job to be done of Robinhood?
A: But we're a brokerage.
B: We're a gaming company. Blizzard doesn't tell Leroy Jenkins he's dumb.
A: You'd... actually... like... our customers to lose all their money.
B: I like them engaging in high-variance behavior which brings them back next month and the month after that.
A: Sweet God there was a plan for this!?
B: What did you think our 'Be a legend' campaign about?
B: I like them engaging in high-variance behavior which brings them back next month and the month after that.
A: Sweet God there was a plan for this!?
B: What did you think our 'Be a legend' campaign about?
I have complicated feelings about Robinhood.
The best I can say about them, stealing an argument from a coworker, is that there was a generation which thought that investing was not for them until Robinhood put it on an app, and hopefully if they find it fun they fund 401k.
The best I can say about them, stealing an argument from a coworker, is that there was a generation which thought that investing was not for them until Robinhood put it on an app, and hopefully if they find it fun they fund 401k.
And I think they probably accelerated the cartel's [0] transition from charging for commissions to not charging for commissions, which benefits the American middle class by a few hundred million a year (and/or moves cost of brokerage industry from young savers to retirees).
[0] Sorry not sorry, cartel members. We both know that zero pricing was discussed internally for more than a decade before RH forced your hand.
