More bear market signals, this time from stock-trading app, Robinhood. A favorite among retail traders, with more than 22 million funded accounts, trading boomed during the pandemic when stuck-at-home retail traders sought to trade with funds from government stimulus payments. Now stimulus is fading and the retail trading app faces sharp declines in trading activity.
Robinhood shares tank 15% after it loses active users, forecasts weak revenue
Robinhood gave a bleak revenue forecast for the first quarter of 2022 on Thursday as its latest earnings report showed a decline in active users. The newly public brokerage anticipates first-quarter revenue of less than $340 million, down 35% compared with 2021…..Monthly active users fell to 17.3 million last quarter from 18.9 million in the third quarter. (CNBC)
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.