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Berkshire Hathaway Vice Chairman Charlie Munger called Robinhood "disgusting" and said the stock trading app was "unraveling," in an annual shareholder meeting on Saturday.
The big picture: The app reported a decrease in users and a larger-than-expected loss for the first quarter, CNBC reports.
- Robinhood shares are also down 88% from a recent high.
What they're saying: Munger, who has long been Warren Buffett's lieutenant, has criticized Robinhood before, saying it was "deeply wrong" and "god awful that something like that brought investments from civilized men and decent citizens."
- “It’s so easy to overdo a good idea. ... Look what happened to Robinhood from its peak to its trough. Wasn’t that pretty obvious that something like that was going to happen?” Munger said.
- He also criticized Robinhood's “short-term gambling and big commissions and hidden kickbacks."
- “It was disgusting,” Munger added. “Now it’s unraveling. God is getting just.”
Why it matters: Robinhood announced on Tuesday that it is cutting 9% of full-time employees after several years of rapid growth.