© Reuters. The brand of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Street after the corporate’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly
OMAHA, Neb. (Reuters) – Berkshire Hathaway (NYSE:)’s vice-chairman Charles Munger mentioned on Saturday that retail dealer Robinhood Markets Inc (NASDAQ:), which is buying and selling close to a file low, was getting its comeuppance.
After a peak in 2020 in buying and selling volumes, Robinhood posted a 43% fall in first-quarter income earlier this month as transaction volumes declined throughout asset lessons amid poor efficiency of shares. The firm mentioned it was shedding 9% of its full-time workforce.
“Look what happened to Robinhood from peak to trough, wasn’t it obvious something like that was going to happen?” mentioned Munger. “When it came out and went public and everyone went gambling… it was disgusting… Now it’s unraveling, God is getting just.”
The agency was on the heart of the retail buying and selling frenzy when traders used the platform final 12 months to pump cash into shares of so-called meme shares, together with GameStop (NYSE:) and AMC Entertainment (NYSE:).
Shares of the Menlo Park, California-based agency had been offered in its IPO final July for $38 apiece. They closed on Friday at $9.80.
Robinhood didn’t instantly reply to request for remark.