Billionaire Leon Cooperman Believes Robinhood Traders Will End Up in Tears

News
Mon, 06/15/2020 - 18:17
Alex Dovbnya
American billionaire Leon Cooperman has a dire warning for Robinhood traders
Cover image via www.youtube.com
Contents

During his recent appearance on CNBC, American billionaire investor Leon Cooperman opined that retail investors who use the high-flying Robinhood app could end up in tears.

They are just doing stupid things, and in my opinion, this will end in tears.

He refers to the app as ‘the second market’ where plenty of ‘crazy things’ are being done.   

Related
Trump Voices Support for $50 Bln Airline Bailout: 'It Is What It Is'

Leaving hedge funds behind

It’s not hard to see Robinhood are making sophisticated Wall Street investors worried -- its risk-taking users, whose average age is 31, are now outperforming hedge funds.

Robinhood investors poured money into those stocks that were hit the most by the pandemic, including airlines.

Recently, RT host Max Keiser noted that the app’s users were ‘stealing’ Warren Buffett’s money by ramping up their holdings in clobbered airline stocks right on the verge of their stellar recovery.

In the meantime, the 'Oracle of Omaha' made a ‘mistake’ by selling that group of equities, according to President Donald Trump.

Failing a stress test

Last month, Robinhood wrapped up its $280 million funding round, which pushed the company’s valuation to $8.3 billion.

However, back in March, the Silicon Valley startup was making headlines for all the wrong reasons.       

Due to an enormous load of usage, the app suffered several outages in May when the market volatility reached the tipping point. This resulted in a class-action lawsuit filed by disgruntled investors. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings