Robinhood hires CFO and prepares for IPO

Robinhood, the fee-less trading platform, has hired a new CFO and is preparing for the IPO. The company right now is valued at $5.6 billion up from $1.3 billion in 2017. This looks to be a blockbuster IPO and will raise a lot of money. However, Robin is loosing money as a company and will probably continue to do so for several years as evidenced by their own statements. The are taking losses in order to expand market share.
My take on these companies is wait for your money to double, sell half, and keep the other half for potential, much like my take on cryptocurrencies that have massive potential but also large risk. You might look at the example of Amazon and not agree but for every Amazon, there are 100 other companies that don’t make it and go under, so you have to be careful. I’ve learned that the hard way with some of my former investments and having some caution is certainly better than throwing caution completely to the wind.

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