Mar 2, 2020 - Economy & Business

Robinhood reports outage as markets rebound

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Robinhood, a free-trading investment management app, said it experienced an outage as U.S. markets opened on Monday, Bloomberg reports.

Why it matters: The outage cut Robinhood users out of Monday morning's stock rebound of more than 2%, the first gain in eight sessions.

  • The company said in December 2019 that it has around 10 million users, according to CNBC.

What they're saying: Unable to make trades, clients criticized the platform on social media.

  • “We are experiencing a system-wide outage," the company said in a message to clients, according to CNBC. "We are working to resolve this issue as soon as possible."

Our thought bubble, via Axios' Jennifer Kingson: Many Robinhood customers are new to investing and may never have experienced market losses of the sort they may have suffered in the last several sessions.

  • Volatility tends to cause spikes in trading activity, making today a particularly bad time for the platform to go down.

As of noon ET, users were still reporting difficulties with the site on social media.

Go deeper: Wall Street rebounds after coronavirus correction

Go deeper

Expect lawyers to take aim at Robinhood

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

After Morgan Stanley last month agreed to pay $13 billion for E*Trade, deal-makers began buzzing that Robinhood could be the next discount domino to fall. Particularly on the heels of Charles Schwab agreeing to buy TD Ameritrade for $26 billion.

What's new: Robinhood does now have a target on its back, but the archers are more likely to be lawyers than potential acquirers.

Another fiasco for Robinhood

Illustration: Sarah Grillo/Axios

Millions of stock and options traders were effectively shut out of the market for all of Monday as well as two hours of early trade on Tuesday.

Driving the news: The culprit was Robinhood, a fast-growing stock-trading platform that inexplicably face-planted on a day when trading volume surged and the stock market rose by 4%.

Freakout week for investors

Illustration: Sarah Grillo/Axios

As the financial markets swing wildly, investors are calling their financial advisers in droves, trying to figure out if they should buy or sell.

Why it matters: Fear of the coronavirus — and its impact on the economy — is prompting people to want to "time the market," which brokers say is a bad idea.