Munger says retail trading firm Robinhood getting comeuppance

div classBodysc17zpet90 cdBBJodivpOMAHA, Neb. Reuters – Berkshire Hathaways vicechairman Charles Munger said on Saturday that retail broker Robinhood Markets Inc, which is trading near a record low, was getting its comeuppance.

After a peak in 2020 in trading volumes, Robinhood posted a 43 fall in firstquarter revenue earlier this month as transaction volumes declined across asset classes amid poor performance of shares. The company said it was laying off 9 of its fulltime workforce.pdivdivdiv classBodysc17zpet90 cdBBJodiv

“Look what happened to Robinhood from peak to trough, wasnt it obvious something like that was going to happen？” said Munger. “When it came out and went public and everyone went gambling… it was disgusting… Now its unraveling, God is getting just.”

The firm was at the center of the retail trading frenzy when investors used the platform last year to pump money into shares of socalled meme stocks, including GameStop and AMC Entertainment.

Shares of the Menlo Park, Californiabased firm were sold in its IPO last July for 38 apiece. They closed on Friday at 9.80.

Robinhood did not immediately respond to request for comment.

Reporting by Carolina Mandl Editing by Nick Zieminskip

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