Why Robinhood is getting hammered today – TechCrunch | Breaking News Updates

The 2020-2021 negotiation and the investment boom has boosted revenue growth, fundraising and narrative strength for a number of companies. Some of the best known even went public as a result of a global trend that made their companies shine. Now that shine is fading and the value of some fintech companies is plummeting.

The best example of this reversal is Robinhood, a company that has become synonymous with consumer trading and investment activity, and the stock craze in particular. The fact that Robinhood has added crypto trading in recent years, adding to its torrid rise, only makes its recent results all the more relevant to how the public and private markets have changed in late 2021 and onwards. now in 2022.

Robinhood shares fell sharply yesterday and fell further after the company released its fourth quarter 2021 results. IPO and 87.2% off its all-time highs. What happened? Let’s find out.

What makes Robinhood valuable

The easiest way to look at Robinhood’s activity is to multiply active users by average revenue per user. Users – monthly active users, or MAUs – help the company generate payments for order flow and other revenue. Average revenue per user – or ARPU, if you like really awful acronyms – is just that, allowing us to consider overall company health as MAU * ARPU = results.

The better one or the other, the less bad one or the other. More than two in any quarter is good, less than two in any quarter is probably a disaster. Understood? OK, let’s talk numbers.