Robinhood’s Steve Quirk on the return of the meme stock trade

Let's talk about the return to the meme stock trade this week. And it seems to have meant a lot of business for trading platforms, including Robin Hood. Joining us right now is Robin Hood's Chief Brokerage Officer, Steve Quirk. Good morning to you. Good morning. We're all trying to understand what you think actually happened this week, why this happened and really how much of this was driven by retail versus institutions. Yeah. If if we just look at the numbers, the last time the meme stocks, you know, had their rally, we're probably doing about our in our customer base. We're probably doing about 1/4 of the volume we were at that point in time. So we're not seeing which tells you what? Well, it tells me, well, there's a couple things that it tells me #1. If you think about all the people that came into the market during that period, I mean a huge, huge number of new market participants entered that at that point in time. They've grown up. We can see that in, in our data 80% of those customers are still with us, but now they're opening retirement accounts, they're looking for yield, you know they're they're opening the credit card to get 3%. Their move, they've moved on with their life and they're sort of rounding out their investing experience. In this instance, we did see our volume spike. So there is still is interest in this, you know there's interest in movement and volatility. That's really what it is. But you know our two biggest days, we're not anything related to this. They were rounded NVIDIA, NVIDIA earnings and NVIDIA news. Do you look at this as a positive thing or a negative thing for the marketplace when you see stocks move like this? I mean we were talking about sort of the integrity of the market the other day with Jay Clayton, former Head of the SEC. I watched it and I think there is genuine concern that when things like this happen and it's not really moving for fundamental reasons, that it undermines that integrity. Yeah, I think that, by the way, there's a good segment, and I watched it here. He made a couple points which I thought were really interesting. The number of tradable instruments is down pretty dramatically, right? At the same time, we're at the highest participation rate in the US for households. So now you have more participants with fewer instruments, right? It's naturally going to lead to some concentration in areas. I would also say even the number of people that came into the marketplace, you know during COVID and the GameStop era, those people are still in the marketplace, majority of them are still in the marketplace and now they're investing in a very different way. So the question always becomes, hey, we would all like, we all think it's beneficial for for every American to to participate in the greatest wealth creation vehicle in the world. How they get there, if it's through this, right. But if it's through speculation and they lose, yes, that's a problem. It is a big sometimes they leave. They don't stay. Yeah. So when you see a a GameStop move the way it does or you know by the way Trump, Trump Media's company, that's the top ten, top ten, top ten. I think it's #10 #10 on your on Robin Hood. I don't know what you think of that. You say to yourself that that this seems like a completely plausible evaluation. Or do you say this is insane? And the the folks, you know, it's hard to tell your clients that they're not smart, but are they making a big, big mistake? Here's the way I'd say it if you think like we can watch what they're doing with their portfolios. And I, and as I said, 80% of those people that came in the marketplace are still with us. Over 2/3 of the people that are even participating in GameStop, AM, CDJT, they're long term investors. So they're taking a small portion of their portfolio and saying this is interesting. It's what everybody's talking about. It's and they think of it as a trade. They think of it as a trade. It's not an investment. It's not something that they they might because you can look at you you looked at our Ricks, you can see AMC and GameStop are not moving to the top of that right. This is a trade for them and something interesting. But their core portfolio is going to remain you know the most popular names that that sit on that. No. When you said that they're acting differently this time it's like yeah they got about a tenth of the money they had last time that they were if they stayed in some of those names. Right. And then it. Yeah I don't I think but you have to make the assumption that's the only thing they were doing right there don't understand. Yeah, but it's been there's been a lot of, a lot of pain in those, in the meme stock still. This has been, yeah, yeah.

OTHER NEWS

51 minutes ago

Single Kate Ritchie flirts with Hollywood star Sam Neill in cheeky exchange - after she asked Michael Usher out on a date

51 minutes ago

The Bold and the Beautiful star Ashleigh Brewer reveals the racy item she steals from every TV set - including from her stint on Neighbours

51 minutes ago

Samsung Electronics names new chief for semiconductor business as AI chip race heats up

51 minutes ago

Bills Flexing? Week 13 Game vs. 49ers Subject to Change

51 minutes ago

Tesla Fremont factory suffers another fire, investigation underway

52 minutes ago

Guess which ASX 200 co-founder just sold $33 million worth of company shares

52 minutes ago

Monster Hunter Stories Hands-On Preview: Gotta Hatch Em All

53 minutes ago

Sanders: ICC ‘right’ to seek arrest warrants for Netanyahu, Israeli defense official

53 minutes ago

Thousands of jobs at risk if UK fails to act now on North Sea energy transition

53 minutes ago

The alleged leaders of a suspected German far-right coup plot are going on trial

53 minutes ago

Why is France trying top Syrian former officials for alleged torture and killing of father and son?

55 minutes ago

Jim Parsons has dramatic response to potential ‘Big Bang' sequel

57 minutes ago

City Hall aide suspended during FBI probe of Adams campaign fundraising is cooperating with feds: sources 

58 minutes ago

Man Utd transfer news: Rio Ferdinand SLAMS Man Utd's summer transfer business

58 minutes ago

Editorial: Lifestyle audits could eliminate fraud at Home Affairs

58 minutes ago

‘This is not an opera’: Macklemore tells Perth crowd to stand up and put their phones away

59 minutes ago

Microsoft’s CEO Says New AI PCs Will Revive PC-Mac Rivalry

59 minutes ago

BlackRock whistleblower sues over firing, shutdown of China monitoring tool

59 minutes ago

Rio Tinto declares force majeure on Australian alumina cargoes

59 minutes ago

Home Sec James Cleverly stresses importance of the Online Safety Act

59 minutes ago

Should the Lakers be targeting Becky Hammon for head coach?

59 minutes ago

Report: Devin Booker Won’t Request Trade From Suns This Summer

59 minutes ago

Janelle Brown reflects on her first Mother's Day after her son Garrison's tragic passing and the grief that hit her after making a special pie

59 minutes ago

Video: Chet Hanks hilariously explains Drake and Kendrick Lamar's rap feud in message to confused dad Tom Hanks - as Oscar winner's brutal response is revealed

1 hour ago

How does a worm get into a person’s brain?

1 hour ago

Temasek backs OpenAI investor’s new $336m tech fund

1 hour ago

‘Twinkle Khanna is the brains of the family; main anpadh aadmi hu, zyada padha nahi hu’: Akshay Kumar

1 hour ago

PFF Explains Russell Wilson’s Biggest Weakness Heading Into 2024

1 hour ago

Truck stops at Oshoek border slashed to 10 minutes with new systems, says Sars

1 hour ago

FAF 2024: Transport Minister presents Tunisia’s vision in civil aviation field by 2040

1 hour ago

Eminem's Daughter Hailie Jade Scott Marries Evan McClintock

1 hour ago

MIT accused of discrimination for women of color scholars program in civil rights complaint

1 hour ago

Race for Golden Boot undecided but Williams safe bet for Golden Glove

1 hour ago

Best early Amazon Prime Day TV deals: Save on top OLEDs and Samsung's Frame QLED

1 hour ago

LOOK: Two drivers killed in Ekurhuleni crash involving 11 vehicles

1 hour ago

Olsen twins join ‘Full House’ family in photo tribute to Bob Saget

1 hour ago

Which ASX 200 stock just plunged 12% despite record full-year earnings?

1 hour ago

Kylie Kelce's Powerful Graduation Speech Takes a Playful Turn

1 hour ago

Toddlers exposed to fumes at pool

1 hour ago

Salmon giant Tassal used 'shoot and scare tactic' to deter seabirds near Tasmanian salmon pens but failed, documents reveal

Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch