Robinhood Crosses $50 billion Market Capitalization...A Few Thoughts

What a great day for Robinhood, their shareholders and the ‘degenerate economy’ (and my degenerate economy index).

Robinhood announced earnings after the close yesterday and the momentum gods are happy with the stock at all-time highs and a market cap of $50 billion.

Below is the AI earnings summary from Stocktwits.com now created in real time for users at top of ticker stream (same for all company earnings). Our summaries also analyze the messages in the Stocktwits stream to offer up a bullish and bearish case on the stock from our community.

Just last November, the stock was just $25 and I was covering it here in the newsletter saying ‘The Boom Is Back’.

If you follow me on Stocktwits (please do) I started buying the stock as it crossed $20 last summer (I hated it at $10 a year earlier).

The road from our seed investment at $10 million valuation (2013) to $10 billion was relatively fast and smooth. Few believed the world wanted or needed a modern eTrade or Schwab. That is how outlier companies with superior products and under appreciated demand expand markets and valuations.

Then came COVID, ‘confettigate’ and the Gamestop idiocy. The road from from the drama in 2021 to $50 billion today has been a wild one.

For people confused by my constant use of ‘degenerate economy’ , in the year 2021 the fact that Robinhood shared ‘confetti’ with users after a trade or investment was made…was controversial 🙂 !

I can’t imagine what it was like inside the Robinhood board meetings and offices from 2020-2023, but great investors like Micky Malka at Ribbit Capital stepped up to lead very large investments into the abyss as the media frenzy ensued demanding blood.

I have a long memory for the asshats that piled on Robinhood for their own wallets.

Chamath would go on CNBC and Twitter and promote his mostly worthless SPAC’s and tell people that Vlad should go to jail. Talk about projection. At Stocktwits we have spent years cleaning up spam and trolls of his idiot army left holding the bags of his awful SPAC’s and CNBC and Twitter pump and dumps. I remember talking to Chamath a year later and he led with a wink ‘it’s just business’ when talking about his Robinhood attacks. That was gladly the last time I would talk to him. Imagine being in ‘business’ with that guy.

Dave Portnoy who sells parlays for a living screamed jail for Vlad as well. The same Dave who was on Twitter recently pumping his worthless memecoin called ‘jailcoin’.

Scott Galloway went on cable news endlessly ranting about Robinhood and ‘addiction’, never sharing/disclosing that he was an investor in Public.com a Robinhood clone.

They will say that all is fair in business, but I would say ‘just because you can, does not mean you should’.

As the ‘degenerate economy’ accelerates with a new SEC, Twitter hosting Nazi’s, Columbia hosting Hamas, Chinese shipping us poisonous vapes, Draftkings profiting from parlays, $HIMS hawking blue pills and fat pills all day and crypto enabling peer to peer gambling across the globe, you better learn how to spot the sucker in the room and be careful who you follow.

It is truly ‘everyman for himself’ as digital degeneracy explodes and consumer protection implodes.