Services that help consumers trade may need to retool their models over time to ensure long-term income
With the Coinbase direct listing behind us and that Robinhood IPO Ahead of us is an exciting time for consumer-centric trading apps.
Interfere with the upcoming EToro’s SPAC-led debut, general uptrend in cryptocurrency, record highs for some stock markets and recent rounds of Public.com, M1 finance and based in the UK Free tradeand you might be excused if you expect the consumer goods boom to continue to the right.
But will it? There is data going both ways. Recent information could suggest that some of the most lucrative trading activities at companies like Robinhood may be slowing, but there is also encouraging information about downloading apps that paints a more optimistic picture of the persistence of the boom in consumer interest in savings and investments that The Exchange has been keeping an eye on for a while.
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Our question today is: How optimistic are companies about continued consumer interest in stocks and other asset trades? And why? We will also ask similar questions to their supporters.
We have compiled notes from Accel Sameer Gandhi about views on Public as one of its supporters and index Jan Hammer on Robinhood and its market; and comments from Public.com and M1 Finance on the future interests of consumer trade. The thoughts of Robert Le, PitchBook’s foremost aspiring technology analyst, leave it behind.
We’ll start with a quick look at some data to get an idea of where consumer trade demand seems to be today, and then consider what the companies in the ring and their supporters think. We’ll conclude with a synthesis of all perspectives to develop hype-adjusted expectations for the rest of 2021.
Bullish data, bearish data
Coinbase performed its direct listing on the back of one of the most impressive quarters we’ve seen in business results, which means trading started when it looked as good as a company. Does that also apply to Robinhood and Company?