The un-Pinnable stock

Friday, May 17, 2019 by Robinhood Snacks | Disclosures

"I just want to Pin it"

Dow Jones
25,863 (+0.84%)
S&P 500
2,876 (+0.89%)
Nasdaq
7,895 (+0.97%)
Bitcoin
$7,856 (-4.02%)
10-Yr US Treasury
2.394%

Hey Snackers,

Reminder: Plan the excuses today. An estimated 10.7M people are expected to call in sick after Sunday's Game of Thrones finale.

Markets are focused on rebounding from this week's 2nd worst day of the year — The Dow jumped over 200 points Thursday.

Debut
1. Pinterest's inspiration-less first-ever earnings report

"Where to hide from investors"... We actually found a good Pinterest board for exactly that. In its first-ever earnings report since last month's IPO, Pinterest found a theme: slowing growth. Profits, revenues, user growth. All slowed. Then shares of the social-network-for-curating-nice-things dropped 15%. Here are 2 numbers to un-Pin.

  • 3X: That's how many times larger the $41M loss was than analysts expected.
  • 291M: That's how many Pinners there are out there showing off very nice/symmetrical pictures of anything.

Fewer pins, more promos... Your Snacks team compared Pinterest's average revenue per user — aka the number of ads users see as they scroll for the ideal guest bathroom wallpaper — to Facebook's.

  • Pinterest made $0.73 of revenue per user last quarter.
  • Facebook was almost 10-times that at $6.42.
  • The key to profits for Pinterest: Add more ads mid-scroll without overly annoying customers (80% of them are American moms between 18-64).
THE TAKEAWAY

This is the nicer social media company... It's nice by not showing users as many ads as other social networks do. And it's nice by not having as much misinformation/hateful news-focused content as Twitter, Facebook, Youtube, and other platforms do. One of those is nice for investors, the other not so much.

Team

Mutual hatred... is a powerful motivator #WhiteWalkers. Long-time enemies Sony and Microsoft battled admirably in the multi-phase Playstation vs. Xbox video game wars of our youth. Now they're truc-ing: An "unusual" partnership on cloud computing, the crucial engine that powers modern, online gaming.

It's hairy out there... A few major enemies forced this frenemy-ship:

  • "The tool kit": Amazon's Lumberyard lets anyone make their own games on its very-much-leading Amazon Web Services platform.
  • "The Holy Grail": That's what they're calling Stadia — It lets anyone, anywhere begin playing big games sans gaming console.
THE TAKEAWAY

Play anything on any device... That's the future of gaming, according to Microsoft. So if a surprise partnership with Sony can help it achieve that in the $130B video game market, Microsoft is down to team up.

Born

Congratulations. It's a beautiful healthy... platform for securities trading. America just birthed its 14th stock exchange, the uncreatively named Long Term Stock Exchange. LTSE is just as regulated as siblings New York Stock Exchange and Nasdaq (it was approved by the SEC Friday and expects to open this year), but it's mission-oriented: It wants to fix "short-termism."

Quarter's over. On to the next quarter... Currently, public companies must calculate, prep, and announce their earnings reports every three months. Focusing on short-term results only benefits short-term focused traders — Hedge funds and activist investors. Instead, LTSE introduces 3 rules to encourage long-term thinking:

  1. Seniority-based voting: Older shares get more voting power. So the more in it for the long haul you are = the more power you have as a shareholder.
  2. Tie exec pay to long-term metrics: Limit CEOs from floating away on golden parachutes.
  3. No forecasts for quarterly earnings: None. Investors should care about 3 years, not 3 months.
THE TAKEAWAY

This is Silicon Valley's farm for unicorns... You've seen the volatility of recent tech IPOs Uber, Lyft, and Pinterest. Long Term Stock Exchange wants to give companies the benefits of public markets (raise $$, trade your stock!), while cutting the negatives (no sacraficing long-term health for short-term profits). It's crafted for Silicon Valley's finest.

What else we’re Snackin’
  • Midas: Goldman makes its biggest acquisition in nearly 20 years: A wealth management firm
  • Fancy: Burberry is closing 10% of its stores worldwide to regain its exclusivity
  • Spared: Snap jumps 7% after Instagram kills its Snapchat clone, Instagram Direct
  • Ranked: Fortune announces its annual Fortune 500 list
  • Protein: Walmart's earning reveal a 37% jump in ecommerce sales powered by grocery orders
  • Unplugged: Nvidia makes the chips fueling data centers — now it says its clients are putting a "pause" on investing in those data centers
Snacks Daily Podcast

On today's Snacks Daily pod:

  • For the 5th straight quarter, TikTok was the most downloaded app on the App Store worldwide. Here's what you need to know about China's virtual karaoke app that's owned by a $78B unicorn.
Friday

Disclosure: An author of this Snacks owns shares of Amazon and Sony.

Our Editorial Principles
Robinhood Financial LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc. Equities and options are offered to self-directed customers by Robinhood Financial. Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC insurance.

Getting “early access” to options or Web is defined as signing up with a valid email address for a spot in Robinhood Financial’s respective waitlist queues for Web or for options. Getting “early access” to Robinhood Crypto is defined as signing up with a valid email address for a spot in Robinhood Crypto’s waitlist queue. Early access to the waitlist for Web, options, or Robinhood Crypto should in no way be construed as confirmation that a brokerage account with Robinhood Financial has been opened or will even be approved for opening. Priority may be given to Robinhood Gold subscribers and existing customers of Robinhood Financial.

Free trading of stocks and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices or Web. Relevant SEC & FINRA fees may apply. Please see the Commission and Fee Schedule.

Robinhood Financial is currently registered in the following jurisdictions. This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Robinhood Financial is not registered. Additional information about your broker can be found by clicking here.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information. These disclosures contain information on Robinhood Financial’s lending policies, interest charges, and the risks associated with margin accounts.

Investors should consider the investment objectives and unique risk profile of Exchange Traded Funds (ETFs) carefully before investing. ETFs are subject to risks similar to those of other diversified portfolios. Leveraged and Inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.

Although ETFs are designed to provide investment results that generally correspond to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. A prospectus contains this and other information about the ETF and should be read carefully before investing. Customers should obtain prospectuses from issuers and/or their third party agents who distribute and make prospectuses available for review. ETFs are required to distribute portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. ETF trading will also generate tax consequences. Additional regulatory guidance on Exchange Traded Products can be found by clicking here.

Options transactions may involve a high degree of risk. Please review the options disclosure document entitled the Characteristics and Risks of Standardized Options available through https://about.robinhood.com/legal or https://www.theocc.com to learn more about the risks associated with options trading.

The cash management program is expected to be offered by Robinhood Financial LLC. The cash management program, when operational, will be an added program to Robinhood brokerage accounts and will not be a separate account or a bank account. Robinhood Financial will provide additional information on the cash management program once it is operational to help customers, including those with “early access,” to determine if they want to add the program to their brokerage account.

Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and customers may lose money, including their original investment. Robinhood Financial LLC, member FINRA/SIPC.

Testimonials may not be representative of the experience of other customers and are not guarantees of future performance or success. Robinhood Financial LLC, member FINRA/SIPC.

Third party information provided for product features, communications, and communications emanating from social media communities, market prices, data and other information available through Robinhood Markets, Inc., Robinhood Financial LLC or Robinhood Crypto, LLC are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any financial instrument or cryptocurrency or as an official confirmation of any transaction. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. Any information about Robinhood Crypto on any Robinhood website (including www.robinhood.com and blog.robinhood.com), the Robinhood platform, e-mails, or any other communications, are meant for informational purposes only and are not intended as an offer, solicitation, or advertisement for Robinhood Crypto or any goods or services offered by Robinhood Crypto. The Robinhood website provides its users links to social media sites and email. The linked social media and email messages are pre-populated. However, these messages can be deleted or edited by users, who are under no obligation to send any pre-populated messages. Any comments or statements made herein do not reflect the views of Robinhood Markets Inc., Robinhood Financial LLC, Robinhood Crypto, LLC, or any of their subsidiaries or affiliates.

Investors should be aware that system response, execution price, speed, liquidity, market data, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. Trading in cryptocurrencies comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. Cryptocurrency trading requires knowledge of cryptocurrency markets. In attempting to profit through cryptocurrency trading, you must compete with traders worldwide. You should have appropriate knowledge and experience before engaging in substantial cryptocurrency trading. Cryptocurrency trading may not generally be appropriate, particularly with funds drawn from retirement savings, student loans, mortgages, emergency funds, or funds set aside for other purposes. Cryptocurrency trading can lead to large and immediate financial losses. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a particular cryptocurrency suddenly drops, or if trading is halted due to recent news events, unusual trading activity, or changes in the underlying cryptocurrency system. Several federal agencies have also published advisory documents surrounding the risks of virtual currency. For more information see, the CFPB’s Consumer Advisory, the CFTC’s Customer Advisory, the SEC’s Investor Alert, and FINRA’s Investor Alert.

Robinhood Crypto, LLC has a seller of payment instruments license in Georgia, with reference number 61417.

Robinhood Crypto, LLC has a money transmitter license in New Jersey, with reference number 1803456-C22.

Please note that an Alaska money transmission license does not cover the transmission of virtual currency.

Check the background of Robinhood Financial LLC and Robinhood Securities, LLC on FINRA’s BrokerCheck.

Robinhood Terms & Conditions    Disclosure Library    Contact Us    FAQ

© 2019 Robinhood. All rights reserved.