(Personal opinion) You'd be very surprised by this announcement if you modeled Robinhood as a discount brokerage. You'd be less surprised if you modeled it as a gaming company. I think the second is, broadly, the correct mental model for Robinhood.https://www.bloomberg.com/news/articles/2020-04-16/robinhood-said-to-be-raising-new-funds-at-about-8-billion-value …
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More succinctly: I’d also be modestly bullish on a very traditionally positioned brokerage (ex. IB) in these times outside the “entertainment” aspect Robinhood offers.
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You’re right that it’s a different part of the business. For brokerages specifically, I’d still expect more revenue from transactions (order flow + commissions) and increased cash balances - even if risk is also higher.
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