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Robinhood Wants to Be Taken Seriously. Its Business Model Says Otherwise.

Robinhood Markets executives mentioned safety a dozen times on the company’s third-quarter earnings call. The word choice points to the company’s central dilemma right now: Robinhood (ticker: HOOD) wants regulators and long-term investors to take it seriously, but its business model depends on novice investors making YOLO (you only live once) trades on meme coins and derivatives that often carry leverage. Robinhood lost about 100,000 net subscribers in the quarter, posted a wider-than-expected loss, and saw its revenue fall 35% from the prior quarter.

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