https://www.wsj.com/articles/cathie...ig-on-innovation-11644760800?mod=hp_lead_pos5 Cathie Wood’s ARK Investment Management LLC is snapping up more shares of largely unprofitable companies, doubling down on a bet that many traders and investors expect to be tested this year by rising interest rates. Over the past two weeks, Ms. Wood’s flagship ARK Innovation ARKK -2.52% exchange-traded fund has bought more than $400 million of high-growth stocks, including Roblox Corp. , Block Inc. and Robinhood Markets Inc. That’s according to the firm’s daily trading logs and stock-pricing data as of Friday. She says the companies, which span videogaming, digital payments, trading and other industries, have the potential to change the world. Cathie wood bought about $400MM of some new shares. Not sure if this is new money, or her re-balancing. ARK likes to buy dips.....
I bought 100 share of ARKQ last week...Forget the price. I then did a covered call for about 9 months out. Income while I wait...
Robinhood Markets has been a sinking ship since inception. Since she bought into it at stupidly inflated prices, I guess she might as well go down with that ship at its fire-sale prices. Here's the big problem with that, HOOD is burning through massive cash and is no where near to being profitable. With a bleak future that's getting worse and worse and crowded by fierce competition, HOOD is going to remain stuck with similar problems like PayPal. At least Paypal is profitable (for now), but customers are jumping ship while the stock is unlikey to see its all-time highs ever again. There is also other major 'regulations risk'. What happens when/if fiduciary laws are handed to US brokers which forbid practices like payment-for-orderflow? Other western nations like the UK and Canada have prohibited these unethical practices a long time ago.
I have not looked at Robin Hood financials since I do not own it. We should still thank it for bringing trading commission to $0 on stocks. Yes, there is a lot of competition. But certainly Robin Hood could do well. I figure it has a lot of traders borrowing on margins. That is a huge revenue source. It can also build the 401k, HSA or other IRA offerings. Those are not hard. It can also offer some ETFs on its own. Just like what Fidelity has been doing. It can even compete with ARK. Certainly it is experiencing the growing pains. All of this is on the management team to lead the firm.
I think you may have missed the boat on what is being discussed. Your $0 commission is actually costing you MORE than if you had purchased from a regular broker who charges a commission.
That is your opinion which you are entitled to. I have a different opinion,that there is no saving I have presented it previously. You are talking without offering proof. One poster previously posted a test he performed which he believed supports your case. However the test was faulty because it measured an honorable firm IB with advanced routing vs. a schlack firm that can not be trusted to route orders efficiently. It goes without saying that most of wall street is technologically backward and will make out like bandits if payment for order flow is banned In the beginning they will lie about how much they are saving you. In this situation statistics are very easy to manipulate. Furthermore your logic is not impeccable, I could care less what Canada does. Furthermore why is traditional Wall Street favoring a ban on payment for order flow now after 100 years. It is not out of the goodness of their heart for the little guy but because zero commissions has affected their profit margin. Bottom line you run your trading the way you want( with commissions)and let me run my business(zero commission) the way I want.