[HN Gopher] Robinhood: We are letting go approximately 9% of our...
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       Robinhood: We are letting go approximately 9% of our full-time
       employees
        
       Author : donsupreme
       Score  : 56 points
       Date   : 2022-04-26 20:30 UTC (2 hours ago)
        
 (HTM) web link (blog.robinhood.com)
 (TXT) w3m dump (blog.robinhood.com)
        
       | oversocialized wrote:
        
       | jimmygrapes wrote:
       | I don't think they make much money if there are no transactions,
       | and the world chaos of late has made "hodl" the wisest choice for
       | most. Probably will pick up later.
        
       | drocer88 wrote:
       | https://www.cnbc.com/quotes/HOOD?tab=financials
       | 
       | Those loses look pretty big.
        
         | throwaway4good wrote:
         | That is an insane drop. What is going on? Are they being
         | outcompeted or simply not making money? Is their business model
         | (being an easy to use broker for little people) simply not
         | good?
        
           | nowherebeen wrote:
           | There aren't offering anything new and even frontrun their
           | customers. And with the GameStop fiasco, I think a lot of
           | people realizes it was a bad business model. I don't think
           | they will be able to recover. It will drop even more if a
           | recession ever hits.
        
             | qeternity wrote:
             | > and even frontrun their customers.
             | 
             | Oh ffs no they don't.
        
           | cwilkes wrote:
           | Damn it was $70/share 8 months ago and now it is $10.
           | 
           | Which means that a 4 year stock grant worth $700k then got
           | you 10k shares. That's now worth $100k
        
           | yhoneycomb wrote:
           | Went from being the golden child of /r/wallstreetbets
           | (literally every portfolio screenshot was of robin hood) to
           | being villainized due to suspicious circumstances regarding
           | locking people out of trading Gamestop "for their own good."
           | Now any screenshot of robin hood is ridiculed.
        
             | brian_herman wrote:
             | Yeah as soon as those orders weren't being filled and the
             | ceo of robinhood was grilled by congress no one ever
             | believed in them. On the discord there still people that
             | use robinhood but most people use different brokers anyway
             | like TD Ameritrade.
        
               | unmole wrote:
               | TD Ameritrade blocked trading in GME for the exact same
               | reason as Robinhood.
        
           | Sohcahtoa82 wrote:
           | My anecdata...
           | 
           | I started trading on RH in 2019. They make investing simple
           | and approachable for someone who like me who knew the basics
           | and just wanted to play around a bit with some spare cash.
           | 
           | But after a couple years when I want to start taking it more
           | seriously, their platform has failed to grow and improve. In
           | the three years I've used them, I can't think of a single new
           | feature they added that I use. Meanwhile, there are plenty of
           | things I'd like. For example, it's beyond ridiculous that
           | price graphs don't have their axes labeled. When selling
           | stock, it's always FIFO, so I can't choose which lots to sell
           | to optimize tax liabilities.
           | 
           | The problem is that I have a hard time leaving because their
           | margin rates (~3%) are so damn good compared to the major
           | players (8% or higher).
        
             | probIs8 wrote:
        
             | reducesuffering wrote:
             | Interactive Brokers have always had the best margin rates:
             | https://www.interactivebrokers.com/en/trading/margin-
             | rates.p...
             | 
             | Current max is 1.83% but the more you borrow it
             | asymptotically approaches 1%. (subject to change, same as
             | RH)
        
               | toomuchtodo wrote:
               | IB has very conservative risk management wrt margin and
               | there is no margin call. If the market moves against you,
               | they will liquidate you rapidly. Something to keep in
               | mind when considering your LTV. Their margin rates are
               | good, but there's a reason they're good.
        
             | toomuchtodo wrote:
             | Good margin rates will be difficult to find in a rising
             | interest rate environment. You can get lower rates from
             | traditional brokers if you have a substantial net worth btw
             | ($1MM+ AUM).
        
         | toomuchtodo wrote:
         | Pandemic gambling steam was going to run out eventually, but
         | with $6B cash cushion, gives them a lot of time to figure out a
         | long term strategy or get acquired by a traditional brokerage
         | looking for a youth channel.
        
       | kwertyoowiyop wrote:
       | It's time for fuckedcompany.com to come back.
        
       | wly_cdgr wrote:
       | They prob just intentionally overhired because they could afford
       | to, to deprive competition of talent and to see who did well.
       | That's what I'd do if I had cash to burn in a competitive
       | industry
        
         | aaomidi wrote:
         | Yeah I'm gonna empty out my assets and close my account.
         | 
         | I HATE companies that fire people on the first bad quarter.
         | People are relying on this salary to live.
         | 
         | Literally have some basic fiscal responsibility and don't hire
         | to the point where one bad quarter means you have to fire a
         | tenth of your workforce. The fuck.
        
           | Gigachad wrote:
           | That's the startup tech company way though. You get in and
           | make stupid amounts of money on the understanding it could
           | vanish at any moment but your skills are valuable so you can
           | get a job somewhere else quickly.
           | 
           | I feel much worse for the casual employees who can have their
           | hours reduced to unlivable amounts silently with no press
           | release.
        
       | 3a2d29 wrote:
       | As a junior engineer with 1 year of experience, I was really
       | looking forward to my first job switch and salary increase.
       | 
       | Starting to look like I missed the golden job market between this
       | and Meta/Twitter hiring freezes.
        
         | probIs8 wrote:
         | Yup; a VC I brunched with a couple weeks ago said cloud is dead
         | and he's looking for alternatives
        
           | Ancalagon wrote:
           | How are Meta/Twitter/RH related to cloud?
        
         | jeffnv wrote:
         | It always feels that way when you're about to jump. Don't
         | worry, from my perspective this is still the golden age.
        
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       (page generated 2022-04-26 23:01 UTC)