📉 This isn't what Robinhood planned

Well, Robinhood, this is awkward | Ore-some story, brah | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for August 20th in 3:05 minutes. ✌️ There are two types of investor in this world: those looking for an overnight success, and those who prefer a slow and steady approach. Join InvestEngine for [Are You An Investor Or Trader?]( next Wednesday, and find out the pros and cons of each. [Get your free ticket here]( Today's big stories - Robinhood’s stock dropped after its earnings announcement, with crypto mostly to blame - You might think you’ve missed all the recovery-driven opportunities, but there are still a few ready to play catch-up – [Read Now]( - The price of iron ore tumbled to its lowest in months as China took a step back from steel A Not-So-Warm Welcome [A Not-So-Warm Welcome] What’s Going On Here? Robinhood posted a disappointing [earnings]( update this week, in the trading platform’s first since it listed on the stock market. What Does This Mean? Meme stocks like GameStop and AMC Entertainment may have boosted Robinhood’s bank balance at the start of the year, but last quarter’s revenue – which surged 131% versus the same time last year – had a different headline-grabber to thank: crypto trading drove around 51% of the company’s revenue, up from 17% in the previous quarter. The future isn’t looking quite so promising, mind you. For one thing, a significant portion of that trading was on dogecoin, which investors – who might be realizing that the one-time joke is no laughing matter – have sent down more than 50% from its May highs. Throw in the fact that summer tends to be a quiet period anyway, and crypto trading – and, by extension, the segment’s revenue – is likely to drop off this quarter. Why Should I Care? For markets: It’s all about those Benjamins. If cryptocurrency trading does slow down, it’ll impact Robinhood in one of two ways: it’ll either reduce the amount of cash the company generates, or it’ll push those cash flows into a later quarter ([tweet this](). Either way, its stock – which investors value by how much cash they think it will generate in the future (discounted back to today) – will be worth less now, which might be why Robinhood’s shares initially fell 10% on Thursday. The bigger picture: The crypto slowdown is real. Robinhood is right to be nervous about the crypto market: Nvidia – which [reported]( better-than-expected revenue and profit late on Wednesday – said sales of microchips used for crypto mining last quarter were 30% lower than the chipmaker had been expecting. That suggests there’ll be less enthusiasm for cryptocurrencies themselves going forward, at least in the near term. You might also like: [The pros and cons of investing in Robinhood.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=A Not-So-Warm Welcome&utm_campaign=daily-global-20-08-2021&utm_source=email) 2. Analyst Take You Can (Still) Profit From The Recovery What’s Going On Here? The economic recovery has been working wonders on [plenty of companies’]( share prices, but that’s probably not much good to you if you didn’t buy in last year. Investors, after all, have [already]( priced the recovery into the markets. In other words, stocks don’t have much more to gain from the bounceback. Or rather, most of them don’t: Goldman reckons there are still [a few companies]( that haven’t rebounded as quickly as investors were hoping. That’s today’s Insight: [which companies could be about to play catch-up](. [Read or listen to the Insight here]( SPONSORED BY THE FARMER'S DOG A hot tip for savvy investors and dog owners Fresh pet food from [The Farmer’s Dog]( is a shrewd investment that pays massive dividends. Here’s why. 
You could pay less in vet bills. The Farmer’s Dog customers say they’ve made fewer unnecessary vet visits since they switched from highly-processed kibble to food made with [human-grade meat and veg](. You’ll scoop fewer poops. High-quality food equals [high-quality dumps](, so your dog won’t go as much (and it won’t smell as bad when they do). You might have more time with your dog. Dogs that eat well, live well – [and often longer too](. Now that’s an investment opportunity. [Get 50% off your first order](from The Farmer’s Dog. [Make Your Dog’s Day]( Woke-Up Call [Woke-Up Call] What’s Going On Here? The price of iron ore dropped to a four-month low on Thursday, as China decided that, hey, it is pretty easy being green. What Does This Mean? Iron ore is a major component of steel, which is itself a major component of cars, buildings, and all the other stuff that helps the world keep ticking over. But steel production is also a major pollutant, which might be why a newly eco-conscious China reportedly started cutting back on its steel production last month. And as the world’s biggest user of iron ore, that could leave a serious dent in demand for the metal. It’s not China’s only cutback lately: the People’s Republic has also been reining in the property market, causing house prices to grow at their slowest pace in six months. That means less incentive to build steel-dependent houses, sending demand for – and the price of – the metal down. Why Should I Care? The bigger picture: Bellwethers speak, investors listen. Copper – which is used in everything from electronics to construction – has fallen nearly 20% from its May peak too. That’s not a great sign: metals like copper, iron, and steel are seen as economic [bellwethers]( that give an idea of the health of the global economy, since they’re so closely tied to how busy countries are keeping. So if they’re on the decline, it’s not a great sign for things as a whole… For markets: When it rains, it pours. That warning sign might be one reason why investors sold off stocks on Thursday morning, but it’s not the only one. The vaccine-dodging delta variant is putting prized economic recoveries at risk across the globe, while data this week [showed]( US and Chinese economic growth is slowing down. Add to that the possibility the US Federal Reserve will pull some of its economic support before too long, and it’s no surprise investors are on edge. You might also like: [Can metals bounce back from this?]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Woke-Up Call&utm_campaign=daily-global-20-08-2021&utm_source=email) 💬 Quote of the day “That’s the thing about comedy: there’s something utterly delightful and slightly pure about a really good joke, and to create one is a great pleasure.” – Sean Lock (an English comedian and actor, who died on Thursday) [Tweet this]( SPONSORED BY CHISOS How to make money and make a difference It’s no secret that the world of finance isn’t exactly diverse. So here’s a chance to help change that, and pocket a tidy return at the same time… By investing in [Chisos](, you’ll be backing a number of [high-potential startup founders]( that are typically overlooked and underrepresented. That means you’ll be [helping diverse founders]( access the funding they need to start and grow companies – and gaining exposure to a [broad startup portfolio]( while you’re at it. 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