STORY – The new broker was one of the stars of the pandemic. Its course has melted by 70%, and it is laying off 10% of its workforce.
Robinhood’s fall is as abrupt as its rise was meteoric. The American platform that makes stock trading accessible to individuals published its worrying quarterly results on Thursday. Number of users, turnover, profit… all the indicators are in the red. The results are even worse than what analysts expected. In the first quarter, its turnover fell to 300 million dollars, (-43% over one year), and its average number of users fell to 15.9 million (-10%). As a direct consequence of the difficulties, Robinhood announced on Wednesday that it had to lay off 9% of its workforce, or more than 300 people.
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It is the fifth consecutive quarter of a drop for the company which had benefited greatly from the pandemic. In 2020 and 2021, hundreds of millions of people found themselves confined. To escape boredom and make some money, some have turned to trading apps like Robinhood…