Robinhood’s Terrible, Horrible, No Good, Very Bad Day

Today was Robinhood’s IPO, the day we’ve all been waiting for… and it was one of the worst IPOs of 2021. 😂 The stock plunged from its offering price of $38. 👎 💩

$HOOD’s unfortunate debut has made for juicy gossip, but it’s hardly a surprise. After all, the company’s role in halting shares of GameStop and other securities during January’s Memestock Madness made it a villain among retail investors. 

That hasn’t stopped Robinhood though, which now boasts over 18M users. It’s an astonishing figure when weighed against broker giants Fidelity and Schwab, competitors that have existed far longer than the eight-year-old broker-dealer. Robinhood also reserved 35% of its shares for its 18M users, if they wanted them. But it looks like they didn’t. 😅

Robinhood generates revenue through a controversial practice called Payment for Order Flow (PFOF). PFOF helped power commission-free trading, but the practice could suffer regulatory blows in the near future as reviews of the broker-dealer industry continue.

$HOOD fell 8.3% today to close at $34.82. That price values the company at around $29B. 

Amazon reported earnings today for the first time under new CEO Andy Jassy. Unfortunately, the company’s Q2 earnings weren’t all that. 🤷‍♂️

Amazon blew EPS out of the water, posting $15.12 per share. $AMZN beat analyst estimates of $12.30 per share, but missed on revenue—Amazon reported $113B compared to estimates of $115.2B. 

The profit was greater-than-expected, but the revenue was not. That was enough to upset both investors and the stock. 📉

On the bright side, $AMZN saw its Amazon Web Services sales grow 37% YoY. ☀️ The company also continued witnessing growth from its international segment, +36% YoY. 

$AMZN fell 7.5% in AH trading, but that’s likely to be short-lived. With Amazon’s report, we’ve now wrapped up BIG TECH EARNINGS for this quarter. Look out for our Weekend Rip this Sunday ft. a highlights recap!! 🙌

President Biden wants to change taxes back to where they were before Trump. Oh, and he’s hoping a few changes to reporting requirements will catch tax-avoidant crypto investors. 💰

The latest draft of the proposed infrastructure bill has a component which mandates that any broker—which would include decentralized exchanges and P2P marketplaces—file a return.

The draft also redefines digital assets to mean “any digital representation of value recorded on a cryptographically-secure distributed ledger or related technology.” 🤖

From this change, the government hopes to sus out crypto users who are not reporting profits. The bill expects to raise $28B in capital gains & other income through the IRS.

Crypto reporting is just one of 14 new reporting requirements specified in the bill. President Biden also addressed crypto-related issues in his earlier budget proposal.

All eyes (including the President’s) are on crypto these days. 📈 🇺🇸

Most tech earnings this season have been borriiinnggg, a trend that continued today as $AMZN, $PINS, and $ZEN dropped after reporting. 😪

There have been a few winners, though. 🏆 Among the winners is Australian SaaS business Atlassian, creator of Jira and Trello. Atlassian builds productivity solutions which mostly serve software developers. 

As it turns out, Atlassian had a “ripper of a quarter,” according to Co-Founder/Co-CEO Mike-Cannon Brookes. The company grew subscription revenue 50% YoY to $386M, and total quarterly revenue grew 30% YoY to $560M.

The company posted a net loss on an IFRS basis, but the narrowing loss and analyst beat elevated Atlassian after hours. According to consensus estimates on Atom.Finance, Atlassian expects to make $2.4B in revenue this fiscal year (which runs June 2021 to June 2022.)

$TEAM rose 13.21% in AH.