Welcome back robin hood posted a wider than expected loss in the first quarter. Shares are up nearly three percent here, even as revenue came in well below expectations falling 43 percent year on year that marked the fifth consecutive quarterly drop, pointing to a dramatic slowdown. In the mean trade monthly, active users fell ten percent year on year, joining us to break down the earnings results. Let's bring in youtube host matt, coors and matt you're kind of the perfect guy to talk about this, because you've got a good pulse on the retail trader and i wonder what the sentiment is around robin hood right now.

Given these persistent declines that we've seen at least from the retail trading community, which i'm happily a member of, i don't really think the sentiment has changed. I mean it's a dumpster firebase situation and that's how it said. As you just alluded to over the past five quarters, i mean in 2021 they managed to throw 3.7 billion dollars into a pit douse it in gasoline and light it on fire, and it seems like they're, not really changing course, as we're kicking off 2022., i mean A large part of this is the engagement because we did hear from vlad tenev who said look our larger customers are still active, but those with the smaller size accounts just aren't being active on the platform or in some cases, leaving so i mean what does that Say about where the retail trade itself is because this has kind of been the platform investors have gone to yeah i mean, i think, there's definitely a jump now. Kind of people are ditching robin hood for other commission-free brokerages.

But if i think there's two major ways to look at this, if we look classic fundamental analysis of what's happening, they're monthly, active users in the quarter of a quarter dropping by about 1.4 million, and on top of that, it's worse because they're also getting less money Per user the revenue is dropping, so classic fundamentals is just going down and down, and it doesn't seem like the trend is taking a break anytime soon. But then i think when it comes to robinhood, it's very very important to also consider how is it perceived from the retail trading public and it's really the opposite of the mythological story of robin hood itself. I would say that most retail traders, especially people who identify as being a member of the ape community, really view robin hood to be a little bit closer to the sheriff of nottingham than anything else. So where are they going or are they hitting pause on investing altogether, i mean we keep hearing a lot of institutional investors, increasing their cash that they're holding on the sidelines.

What are you hearing on the retail side? There's definitely been an exodus from robin hood. One of the ones that i know is becoming very popular is public. It's another commission free brokerage, but the difference there is there's no payment for order flow, as there's retail traders learning more and more about. What's going on in terms of market structure, they're, starting to say, okay, i'm either happy paying a commission understanding that i'm paying for transparency or they're going to ones that just don't engage in payment for order flow at all and obviously, like i said, publix a great One, but even certain things that robin hood's doing, i understand it's trying to pull a very sharp u-turn, but one of their most recent things is like: okay, let's extend trading hours, uh, let's make them longer, and what they're doing is letting the retail public trade more Hours which, on the surface level, sounds good, but when you extend them, you're extending the trading when you're not protected by the nbbo and as retail traders are becoming a little bit more informed about how some of this stuff plays out.

It really has that vibe that robin hood doesn't necessarily have the client's best interests at heart, in fairness to robin hood, they've, always kind of warned about the fact that their trading activity, at least on the equity space could slow down just given that you just can't Match the kind of activity that we saw at the height of the gamestop trade crypto was supposed to be the big driver and yes, crypto wallet surpassed that from equities revenue from equities this time around, but it was still down significantly from last year. I mean last year we were talking about 88 billion dollars the same period in the quarter, this time we're talking about 54. yeah, so it surpassed equities and i believe their number one is still collecting the payment for order flow off of options. I still think that's the top dog for them, but even though it's going up, it's still a question of, is it not enough a little bit too late? For example, they recently added shiba inu but as you're, alluding to the fervor and the excitement and the passion of like that high volatility in training, poor shibu inu.

That was a couple quarters ago. So, even if they're attempting to okay, let's rebrand and like really focus on crypto well, it seems like it's going a little bit too slow and at their burn rate right now, like i said 3.7 billion last year, they already burned another 300 plus billion. This first quarter and really the sentiment of it. I just don't see many people like in terms of equities options and crypto.

I think there's different brokerages and exchanges that are more trusted than robin hood. Youtube. Host matt coors good to have you on have a good weekend.