Hi friends ^^
Robinhood CEO Vlad Tenev announced Tuesday that the financial services company would lay off about 9% of its full-time employees in the wake of a drop in active users following torrid growth early in the pandemic, sending Robinhood stock plunging nearly 72% in six months.
Robinhood, which offers commission-free stock and crypto trades via a mobile app, recorded explosive user growth as pandemic lockdowns drove Americans online.
After Robinhood entered the public markets via an IPO last July, the company’s stock price rose more than 60% in a matter of days, reaching a high of $70.39 August 4. However, its shares have sunk 85.8% since, hurt by a slowdown in retail trading.
Robinhood’s active user base has dwindled from 18.9 million in the third quarter of 2021 to 17.3 million in the last quarter, according to the company’s earnings report.
Robinhood’s fortunes were further dampened when Goldman Sachs analyst Will Nance urged investors to sell, saying that Robinhood had a “limited path to near term profitability” due in part to tepid user growth.
What do you think ??? I am interested...