Point72 "Urgently" Asking Brokerages For User Data After Robinhood Kills Off RobinTrack

Discussion in 'Wall St. News' started by Banjo, Aug 13, 2020.

  1. Banjo

    Banjo

  2. S2007S

    S2007S

    Read this yesterday.

    Very significant news that they now are desperate for Robinhoods trading data. Makes you wonder what's actually going on with all that trading data that was once so available.
     
    Clubber Lang, dealmaker and jys78 like this.
  3. Banjo

    Banjo

  4. lindq

    lindq

    Evidently many traders are not aware that there's a super secret way to determine the stocks with the greatest number of buyers. (Or, in Robinhood world, the most popular stocks.)

    It's called VOLUME.

    Duh.
     
    comagnum likes this.
  5. SunTrader

    SunTrader

    Robinhood is retail and the reason why the big boys wanted the data.

    Volume, depending on what it comprises and where it is obtained, isn't only retail.
     
    d08 likes this.
  6. d08

    d08

    Yeah. Very different if some big fund with insider knowledge acquiring X or a thousands Billies from Midwestern US doing it.
     
  7. ajacobson

    ajacobson


    [​IMG]LIVE TV
    Edition




    Robinhood is now worth more than $11 billion
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    By Matt Egan, CNN Business



    Updated 1:45 PM ET, Mon August 17, 2020


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    [​IMG]CNN

    02:24/04:09







    Now PlayingTrading app tries to fix a...
    millennials betting on stocks, is now worth more than traditional gambling companies MGM and Wynn.

    The startup announced Monday it raised another $200 million in funding, pushing its valuation to $11.2 billion. That's up sharply from the $8.6 billion valuation Robinhood achieved in a separate round of funding that closed last month.
    The rapidly rising price tag on Robinhood, which is rumored to be going public soon, is yet more evidence of how the startup has transformed the trading industry and emerged as one of the winners of the pandemic.
    Robinhood is growing quickly during this period of historic market turmoil that has coincided with millions of Americans working from home.

    As of early May, Robinhood reported adding more than 3 million users in 2020. And about half of those new users were first-time investors. Daily average revenue trades, another key metric that tracks the number of trades that earn the company revenue through commissions or fees, more than doubled between the first and second quarters, according to Robinhood.
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    Lawmakers slam Robinhood after apparent suicide by 20-year-old trader

    "In today's volatile market, new traders are seeking ways to profit from the swings in stock prices spurred by Covid-19, which has helped to validate the Robinhood business model," Robert Le, fintech analyst at PitchBook, wrote in a note to clients.
    privacy policy.
    Robinhood has become so influential that sophisticated investors even keep tabs on the popularity of stocks on the platform via websites such as Robintrack.
    At $11.2 billion, Robinhood is now valued higher than some major S&P 500 companies, including Under Armour (UA), exchange company CBOE Global Markets (CBOE), toy maker Hasbro (HAS) and casino companies Wynn Resorts (WYNN)and MGM (MGM).

    In fact, Robinhood's valuation rivals what Morgan Stanley has agreed to pay to acquire online brokerage E*Trade (ETFC). That all-stock deal, which was unveiled in late February as traditional brokerages scrambled to keep up with Robinhood, would value E*Trade at $12.3 billion at current trading prices.
    And yet Robinhood is also under scrutiny because the free-trading boom it inspired has given young investors access to exotic financial instruments normally used by veteran market players.
    US lawmakers have pressured Robinhood to improve safeguards after the apparent suicide in June of a 20-year-old student who saw a negative account balance of $730,000. Last month, Robinhood halted its planned launch in the United Kingdom and all global expansion plans were put on hold.
    Robinhood has promised to hire hundreds of financial services representatives, build more self-service tools and ramp up its educational tools.
    The startup said Monday it plans to use the latest influx of cash to build its trading platform and improve customer experience.
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    Millennials working from home may be moving the market

    "We continue to be laser-focused on providing the best product and customer experience and democratizing finance for all," Vlad Tenev, Robinhood's co-founder and co-CEO, said in a blog post.
    The latest fundraising by Robinhood will also arm the company to pursue an "aggressive expansion," including potential acquisitions, according to Le, the PitchBook analyst.
    And even though Robinhood has been raising cash hand over fist in the private markets, analysts still say an IPO could be in the cards for the startup before the end of 2021.