5. Robinhood's worst week ever
It was a bad week for buzzy fintechs, as Libra retreated from its grand cryptocurrency plans and decided instead to wait for countries to issue their own digital currencies. (Don't hold your breath.)
The biggest loser, however, was Robinhood, the fast-growing stock-trading app that somehow contrived to go down for all of Monday and two hours on Tuesday.
- The outage probably dashed any hope that Robinhood might get snapped up by a larger rival, like E*Trade and TD Ameritrade before it.
Our thought bubble, from Axios' Dan Primack: "Robinhood does now have a target on its back, but the archers are more likely to be lawyers than potential acquirers."
The big picture: Robinhood has screwed up before, more than once. Any sober acquirer would want to impose a lot more layers of compliance and quality assurance — but trying to impose those layers would surely kill the very spirit they were attempting to buy.
An apology: Last week I had Robinhood and Reddit message boards in mind as I was writing about losses exceeding gains in the stock market, even when it was flat on the month. I expressed myself badly, however, and I'm grateful to everybody who wrote in to tell me, quite rightly, that every trade has both a buyer and a seller.
- While trading losses can certainly exceed gains among fast-twitch millennials on Robinhood, they can't do so overall.
Go deeper: Expect lawyers to take aim at Robinhood