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Nigel Morris on fintechs, digital deniers and the future of regional banks

Nigel Morris, Co-Founder and Managing Partner of QED Investors

Nigel Morris, Co-Founder and Managing Partner of QED Investors

Robinhood, the commission-free brokerage house known as the pump through which day traders have inflated the meme stock bubble earlier this year got off to a rocky start to its own life as an open company.

By the time of its Nasdaq listing on July 29, the company’s free trading app with no minimum account size had attracted 18 million customers, many of them new to the stock market. Few people understood that Robinhood monetizes their business through payment for order flow big market makers, almost guaranteeing they’re not getting the best price.

The company either.

He priced his own IPO at $ 38, reaching a market cap of $ 32 billion. Within minutes, its shares fell and ended the first day down 8%, making the deal the most disappointing IPO in recent times.

Capital One was the first true fintech disruptor of our era

Nigel Morris, QED Investors

No matter. During the first week of August, Robinhood himself became a store of memes. Its shares climbed to $ 70 on August 4, then fell back to $ 50 a day later and closed the first full week at $ 55.