Cramer: Robinhood Cant Shake Off Risky Crypto Image
Cramer is not the only Wall Street figure criticizing Robinhoods business model this week. As reported by U.Today, prominent wealth manager Ross Gerber recently lambasted the company as “nothing more than a casino.” The longtime Tesla investor has argued that Robinhood ultimately profits when its users “gamble and lose” on options, crypto, and betting. According to Robinhood‘s Q1 report, the company posted a 15% year-over-year increase in total revenue to $1.07 billion, but it missed Wall Street’s estimates. This was primarily due to a staggering 47% drop in crypto trading revenue, which plummeted to $134 million from $252 million a year earlier. Robinhood CEO Vlad Tenev has made it clear that the company is becoming a diversified financial services “super app” that will no longer rely on cyclical trading spikes.