Thanks for reading and sharing your thoughts.
Truthfully I don’t know the answer to the question I myself have posited, mostly because it’s a private company and without financial disclosure, one may never know till they file for IPO like WeWork did, whether they are just burning cash to keep up the appearance of success. If and when they do then it will be up to the Street to judge. From another angle I’m also not entirely sure I agree with the ethics of the PFOF practice, which the core of their business model depends upon.
But these are personal opinions, and anyone who has successfully build something out of nothing deserves some measure of respect, as long as there wasn’t any deception or fraud involved.
Given the latest debacle, however, over their technical outages, it seems raising money and figuring profitable business models aren’t the only problems Robinhood have to face in their long road to becoming the SouthWest of stock broking. The fact that they have had to do fundraising again — at a time when any financial institution dealing with trading is raking it in — may also be a telling sign of whether their so called innovative business model is in fact, profitable or not.
Whichever way it turns out to be, at the end of the day, I write a lot of my articles simply to share my thoughts, and also because writing about something is how I arrange, digest, and analyze information. Sometimes it is purely for intellectual curiosity. Sometimes it is to draw benefits for my own career and business. That’s really all there is to it.
Thanks again for reading.