Hi dre, my name is anirud kamath and i'm reaching out on behalf of robin hood. We've been loving your educational content on finance and investing. I think, you're doing a great job of demystifying concepts in a way that really resonates with our mission to democratize. Democratize, finance for all we're putting on a great affiliate program to select few influencers and content creators and we think you'd be a perfect fit it's an opportunity to earn a competitive fee for each referral, get to know robin a little bit better.

If you're interested in checking it out feel free to visit our landing page to learn more and apply i'd love to share more with you and get connected. Looking for your response, best ani and at the bottom they've got this beautiful little disclaimer. Don't copy share or use this email without permission if you received it by accident, please let us know and then delete it right away. Well, two things here: first off i never responded to this email and second off too bad for you that email disclaimers are not legally enforceable.

I don't know what to tell you guys. You're done you're done goofed. You watch one of my videos and you know kind of how i feel about the stock, but what whatever? What is up? Everybody, i'm just trying straight three freaking talk ass by saying that i'm not a financial advisor expert, so take what i said the greatest self. Let's get into this filthy video baby, i'm gon na be talking about today, the robin hood debacle in a quite a short sweet, simple to the point round, robin no pun intended sort of uh you know set up here.

I want to talk about what happened to january them, testifying in front of congress, their reasoning for why they restricted trading talk about their ipo here, as well as the what i think is kind of happening right now in terms of the stock price. And what could happen? We afford it as a long-term health of the company so without further ado baby, let's get into this bad boy. So, as we all know, robin hood right, they, they kind of - were the first innovative, so to speak, company that had allowed free commission free trading for the retail investor out there right there. Their initial sort of pitch was that they want to make trading more readily available and, as you can kind of see here by uh their their email, they sent me democratized, democratized being the key word finance for all right.

But what ended up happening back in january is a little bit contradictory to their initial statement and mission with the company now do i think what they initially did was to the benefit of the retail investor. You can make an argument for both sides right. You can argue that, yes, they did no, they didn't. But this you cannot argue in the least bit.

Robbery restricts trading and gamestop other names involved in frenzy and robin hood did this: the gamestop amc nokia express blackberry, a whole piss ton of stocks out there that were really running rampant now. What ended up happening right if you weren't here back in january, if you weren't an ape that was watching these stocks back in january, robin hood and a select few other brokerages, but robinhood being the most memorable and lasting the longest period of time took off the Buy button which essentially just messes up supply and demand to the stock. So, if you think about it like this, if all you can do is sell a security, meanwhile, institutional investors by the way can buy and sell as they please. What does it happen to the stock price? Well, you get this manipulated, corrupted stock price because you're not truly witnessing the demand of the bid in the ass right.

People aren't actually having transactions that are mirroring the demand of the stock in that given period of time. So what ended up happening here is gamestop amc all these different. You know securities in the market, all of a sudden just tanked right, they ran from you know: amc went from two dollars up to 25, gamestop ran up to 500 blackberry, express nokia bed bath and beyond all these stocks that were really really heavily running. All of a sudden just tank because supply and demand got shifted.

Robin hood has a mass majority, at least back then had a vast majority of retail investors that kind of touched different stocks in the stock market, so for them to do that really restricts the way that the market would work and later on, the ceo who's vlad Tentative had to testify for a congress, essentially his reasoning behind why this ended up happening. Now, it's no secret that there's a huge divide between the retail investor, the institutional investor in terms of tools in terms of information available and in terms of overall advantage. I mean that's just as simple as it gets, and what you have here is the ceo vlad tenet spoken for congress, his reasoning behind why this ended up happening and, ultimately, whether it was intentional or not. I'm not going to make that argument right.

That's not for me to do why he ended up having to restrict the buy button, and his reasoning was this and i'm going to provide you a counter argument here. His reasoning was liquidity and collateral requirements by the clearinghouse in which handles those overall transactions for robinhood. Now, what what does this actually mean right, so clearinghouse you've got robinhood. You've got essentially this clearinghouse.

Their job is to manage liquidity moving to and from different securities in the stock market through robinhood as a brokerage. So what he claims ended up happening is they had to up their collateral requirements because of the volatility that was happening in different stocks in the stock market now. The only reason that i can see for this is the amount of crazy options. Trading essentially call options in the derivatives market which really drives up liquidity in any given stock.

It makes the actual you know, people who are handling these transactions, the market makers who have to buy and hedge for these call options of the running the money, because there could have been some collateral requirements and problems there. But that's the market makers right, that's more! So market makers who are writing up these call options than the actual you know clear unless the market makers at this clearinghouse but hey, that's a whole different story. This was the reasoning, but i want to provide you this. If you look at any, you know, tesla, for example, any given day on tesla every single day they get billions of dollars of inflow and outflow 2.785 billion dollars of inflow yesterday and 2.84 billion dollars of outflow.

That's five billion dollars of liquidity, pushing into this single security alone. That's one stock in the stock market, don't even consider all the different securities that get traded on any given day within the stock market. Right, that's absurd! It's a lot of money! So for them to come out, you know it's one of two things: either a they really didn't have the liquidity, which just shows that they're a little bit ill-prepared in the scenario or b. It's just not true, and i i can't speak for either side, but that's the situation.

What ended up going down right now. I want to kind of walk you through the ipo, because this is a pretty fascinating thing to to see happen, so the ipo they announced shortly after this whole debacle ended up happening that they wanted to go public on the stock market right. They wanted to ipo their company and allow the opportunity for people to invest in the company and make money if they wanted to do so and right from the gate. I think you saw some pretty heavy short selling coming into this stock, because it's no mystery that the sentiment towards robin hood is a mixed bag right.

I think you've got a lot of people out there, rightfully so who are pissed off about what happened back in january. You might have actually seen some short selling or the very least some puts, which leads to hedging for the downside, and you saw a red candle on that first date, where you look at the overall daily candle and you've got this big fat disgusting, terrible, terrible candle Right here, right with a huge topping down a big fat, long body, meaning that hey the stock price tried to run up, and it was rejected immediately on top of this, you've got another thing that happened. I never liked seeing this, especially for the long-term health of a company. What ended up happening is the ceo of light 10 have sold 45.5 million dollars worth of shares on the initial ipo day.

Now, keep in mind that this wasn't his entire portfolio within the company that came out to 1.25 million shares of robin hood, but anytime, that you see insiders of a company right living in a vacuum. This is not a company that people are trying to squeeze the crap out of you know on purpose, they sell a huge chunk of shears, that's typically a little bit of a red flag, and you have you know if you look at this right here. This is a pretty fascinating little thing. You've got insider bias versus insider cells.

You can actually see that there were huge amounts of insider selling. On the initial ipoint of this company july 31st, you had 10 sales to one buyer within the insiders of robinhood. I i don't know about that man. It feels like if you look at that from the outside.

In that looks like a rug pull, it looks like they don't have faith in their own company, and that was just at the initial ipo. I mean this. This company opened right its first day was red. Now, why do i think the stock price is running right now? I do think that you saw a little bit of a short squeeze whether it was on purpose.

Well, there was on accident. I think there are a lot of people out there, who sure did robin hood, and i believe that, because if you look at the ortex data, the cost to borrow is at 55 minimum, meaning that this is hard to borrow security. Hard to borrow means that the supply and demand there's not a lot of supply, which increases demand for a short position. You look at weeble, you can't short robin hood on weeble, typically meaning it's a hard to borrow security right.

So what ended up happening? In my opinion, is there is a little bit of a short squeeze happening right now in robin hood, which is a pretty strange concept. It's not something that i actually thought you would see happen, but this is you know something that is actively happening as it may be right now, if you're making money on robin hood congrats, that's what the stock market's there to do. You don't marry a single stock. I'm not personally touching this.

I don't want anything to do with robin hood. That's just me, but i'm not here to make that decision for you, it's your own financial responsibility, your own financial decision. I want you to come to your own conclusions about every single stock. In the stock market, don't let me make that decision for you right, i'm not here to do that, but what i do want to do is offer you the things that i would look for if you do want to play into this company one of the good Things right, i'm just going to give it to you straight as it is the financials.

This company makes a lot of money. You look at their financial statements their annual year over year growth from 2019 to 2020. They grew 245 year-over-year, 958 million dollars comparatively to 277 million back in 2019. But that's not the only thing that matters in a stock and amc and gamestop are great examples of this.

We don't live in a vacuum. There are other things that play into a stock price that aren't necessarily quantifiable, and i want you to think about these things as you go into a stock long term. Now, if you're playing this for momentum, you're playing this as a swing, trade whole different game story. Right it changes things exponentially, but if you're gon na play this long term, you have to consider what i would say are these five things: the fundamentals of the company? What do they do? The qualitative and quantitative analysis sentiment? This is a big big big thing.

I'm gon na talk about that here more in a little bit market - competitiveness right how many other companies out there doing what these guys are doing and then how can they maintain this sort of growth? Now i want to start off here with the fundamentals of the company. What do these guys do? They're unique right, they're up there brokerage titan, calm down buddy. You are always just running rampant when i'm on my computer, the fundamentals of the company. These guys are brokerage right.

Their job essentially is just to be exactly what they are. Robinhood they're there to clear orders. They're there to get things filled. They want commission free trading, they're trying to democratize quote unquote trading for the the general public.

I'm not here. To argue with their statement, i don't personally agree with it, but you make that decision for yourself. Obviously qualitative and quantitative analysis right. What are the things that you can quantify? You can look at their income statements, you can look at financials and you can see that they're pretty strong right they've got good good financials.

You can't argue with that everything in this this freaking column right here is green. Total revenue, awesome, cost of revenue, awesome gross profit, awesome right there, the balance sheets awesome, i mean they're, all good, i'm not going to argue that you can't argue that, but you can make an argument for sentiment, and this is where i think amc and gamestop come Into the equation, this kind of falls under that qualitative analysis right sentiment towards a company is vitally and crucially important, because people have to buy the company. It does not matter if it's, if it's a diamond, but it looks like a big turd. If, if people don't like what the company's doing that, don't like the company just because the sentiment - maybe it's the management, maybe it's their their future growth, maybe it's things they've done in the past.

Maybe it's a scandal. You know you kind of get where i'm going with this sentiment matters because sentiment is essentially what drove amc outside of short interest and outside of all the other data. Obviously sentiment drove amc and gamestop express blackberry, nokia, all those stocks up to what they did. That's the the a freaking nation doing what they do.

It matters think about that market competition. This is something that i think is a good way to kind of sum. This up is, i heard a quote on fox business, and i want to pass this along to you. I can't remember the gentleman's name, but he said i like to invest in companies whose best days are ahead of them and not behind it.

What robinhood did was phenomenal they've done great things in the past, outside of what happened in january. To essentially quote unquote, make things better for the retail investor, but that was the past. It's not the present. It does not mean that you're going to see continued growth year over year over year over year over year, because there's other brokerages that are already improving upon what robinhood didn't.

I think doing it just damn better to be completely blunt right growth. This kind of ties into exactly what i was talking about right here, that market competition are they going to continue to grow the way they are right now. Are there other competitors out there other brokerages that are going to give them a bang for their buck? That are going to be competitive, they're, going to draw away some of these, these retail investors, who are in robin hood and like the brokerage away from what they're doing now, if there's anything that robin has got going for it's the simplicity of their app of their Application, it's very easy to use it's user friendly, whatever it may be, right, um! That's that's a pro whatever i don't personally like it. I don't got.

I don't have robinhood, that's not my thing. That's not my decision to make for you, though, but can they maintain that growth long term? These are all things that you need to fundamentally think about if you want to establish a long term position in the company now, if you're momentum trading like i mentioned whole different story here, that's something you have to think about with your own. You know make your own decisions, i'm not here to do that for you, but what i will say is you need to think about these things if you're going to hold a long-term position in robinhood personally, i think this is a little bit overvalued. I personally wouldn't touch it after this sort of evolved to move up 24 yesterday up 15 today, unless you're swing trading.

Honestly, this this setup right here gives me some clove vibes. This reminds me a lot of what clover did a couple months back, but that's i digress. That's not my case to make you guys make your own financial decisions, it's your own financial responsibility. All that i ask, is that you think about these things before you go into the trade, so that you know what you're getting yourself into right.

That's ultimately the most important thing to me, so i just kind of want to give you this round overview of all these different things that had happened, because robinhood is very hotly talked about security right now, and just kind of give you this this uh overview of What the company has done here in the past six, seven, eight months or so so. My last final statement here i haven't touched robin i've - got no position in robin hood. I don't i don't use their app. I i didn't even reply their email, but i i like to invest in companies whose best days are ahead of them and not behind them.

I like that quote from fox, and personally i don't think robin hood's best days are in front of them. I think they've done they, they paved the way for a huge system of free commission training through blah blah blah xyz right and that's ultimately behind them. I think there's going to be other brokerages that step forward in the future and do good things, but ultimately you guys make your own decisions. I just want to lay the information out there in case you're new to this in case uh.

You know. Maybe this is your first trace trades, video whatever it may be, that's what i've kind of got for you guys so blah blah blah dropping some of my reference catch on the next one light taps always kind of tight. You good kitty. Finally, calm down at the end of the video he finally chills out much love everybody catch the next one and peace.