Robinhood’s 126% post-IPO rally puts its founders within reach of a $1.4 billion stock payout

Robinhood co-founders  Baiju Bhatt (left) and Vlad Tenev.
Robinhood co-founders Baiju Bhatt (left) and Vlad Tenev.

  • Robinhood’s post IPO rally of as much as 126% put its founders within reach of a $1.4 billion payout.
  • Co-founders Vlad Tenev and Baiju Bhatt stand to receive 13.8 million shares if Robinhood’s stock price closes above $101.50 by 2025.
  • Shares of Robinhood hit an intra-day high of $85 on Wednesday, just 19% below the award price.
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A wild post-IPO rally in shares of Robinhood this week put its co-founders within reach of a $1.4 billion stock payout, according to the company’s S-1 filing.

Vlad Tenev and Baiju Bhatt stand to each receive 13.8 million shares if Robinhood’s stock price closes above $101.50 by 2025 for an extended period of time. Shares of Robinhood hit an intra-day high of $85 on Wednesday, just 19% below the price needed for Tenev and Bhatt to unlock their stock award.

The $101.50 price hurdle is based on the average of the daily volume weighted average of Robinhood’s stock price for each day over a consecutive 60-day trading period.

Robinhood stumbled in its IPO debut last week, with shares falling as much as 12%, but the stock has since staged an impressive rebound and recovered all of its losses and then some. The online trading app staged a two-day rally of as much as 126% on Tuesday and Wednesday.

The 13.8 million restrictive stock units were granted to both founders in 2013, but the award terms were revised in May to extend the deadline of the award to 2025. Under the original plan, Tenev and Bhatt would have only received 20% of the stock award if at the time of IPO shares were priced between $30.45 and $50.75, according to the filing.

The company priced its IPO at $38 per share, meaning Tenev and Bhatt would have only received 20% of their stock award if the terms weren’t revised.

Tenev and Bhatt also stand to receive millions of more Robinhood shares if their stock price eventually trades up to $300 per share by the end of this decade. The co-founders were granted an additional RSU equity award, 22 million shares for Tenev and 13 million shares of Bhatt, if the stock price hit a number of price hurdles, starting at $120 and moving up in increments of $30 until topping out at $300.

All in all, if successful, the equity awards for Tenev and Bhatt could be worth up to $10.8 billion and $8.1 billion, respectively, assuming both co-founders don’t sell a single share of their accumulated equity awards after the last tranche is granted at the $300 per share level.

Read more: Top 12 meme stocks this week on Reddit: AMD and Tesla steal the show after blowout earnings reports while Square shakes up the fintech space with a bold acquisition

“The 2021 Market-Based RSUs are designed to incentivize the Co-Founders toward further growing our share price over and above the price hurdles applicable to the 2019 Market-Based RSUs,” Robinhood said in the filing.

In April, Robinhood reduced the annual salary of Tenev and Bhatt to $34,248, which is the 2019 median wage of US workers. Both were previously paid a base salary of $400,000.

Tenev and Bhatt founded Robinhood in 2013. The company has seen its business explode as millions of Americans began investing in the stock market amid the COVID-19 pandemic and government stimulus checks. Epic rallies in dogecoin and meme-stocks like GameStop and AMC Entertainment have also boosted its business in recent months.

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Robinhood extends 2-day gain to 126% as it becomes the most talked-about stock on Reddit’s Wall Street Bets forum

Reddit Wall Street Bets Retail Trading GameStop
  • Shares of Robinhood soared as much as 82% on Wednesday, extending its two-day gain to 126%.
  • The move higher comes as Robinhood takes the spot as the most mentioned stock on Reddit’s Wall Street Bets forum.
  • Robinhood went public at $38 per share last week, and hit a high of $85 on Wednesday.
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Shares of Robinhood surged as much as 82% in Wednesday trades, extending its two-day gain to 126%.

The move higher in Robinhood came after the online trading app stumbled in its post-IPO trades last week, with the stock falling as much as 12% on its first day of trading. Robinhood priced its IPO at $38 per share on Thursday. The stock hit a high of $85 on Wednesday amid numerous trading halts for volatility.

The move higher in Robinhood comes as retail investors talk more about the stock on Reddit’s Wall Street Bets forum. According to data from SwaggyStocks, Robinhood was by far the most mentioned stock on the forum over the past 24 hours, with more than 1,700 mentions. The next most talked about stock was AMD with only 388 mentions on the forum.

A majority of Robinhood’s mentions on the Wall Street Bets forum were positive, according to SwaggyStocks. “Unpopular opinion: Robinhood still has the best mobile interface,” one Reddit user said.

Others were less positive on Robinhood, with one user speculating that the stock “will eventually tank” if payment for order flow is banned by the SEC. Robinhood derives a bulk of its revenue from PFOF practices.

But some investors are not concerned about Robinhood’s source of revenues, including Cathie Wood’s ARK Invest, which has built a more than $250 million stake in the online trading app across three of its ETFs.

Read more: Top 12 meme stocks this week on Reddit: AMD and Tesla steal the show after blowout earnings reports while Square shakes up the fintech space with a bold acquisition

Robinhood stock chart
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Robinhood soars 29% to post-IPO high as investors like Cathie Wood’s ARK Invest build positions

Robinhood logo stocks investing
  • Robinhood soared as much as 29% on Tuesday to a post-IPO record of $48.59.
  • The online trading app is seeing buying interest from long-term investors like Cathie Wood’s Ark Invest.
  • Ark Invest has built a stake in Robinhood worth about $250 million since the company went public last week.
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Shares of Robinhood soared as much as 29% on Tuesday to a post-IPO record high of $48.59 as long-term investors like Cathie Wood’s Ark Invest begin to build a position in the fintech platform.

Robinhood experienced a choppy debut last week, with shares falling as much as 12% from its IPO price of $38 per share. The IPO was unique in that Robinhood allocated shares to its user base, allowing retail investors to get in on the ground level. That access is typically reserved for institutional investors and their clients.

While only 1% of Robinhood’s user base participated directly in its IPO, other investors appear more bullish on the long-term prospects of the online trading app.

Ark Invest has built a near-$250 million stake in Robinhood since it went public last week. Across Ark Invest’s Disruptive Innovation, Next Generation Internet, and Fintech Innovation ETFs, the firm owns more than 6 million shares of Robinhood.

But not all are bullish on Robinhood, with David Trainer of New Constructs arguing that Robinhood is worth no more than $9 billion, representing downside potential of more than 75% from current levels.

“The mounting regulatory risk Robinhood faces makes us concerned that the public may see Robinhood’s stated goal to ‘democratize investing’ as a ruse to lure them into speculative trading and gambling that benefits Robinhood more than the individual investor,” Trainer said in a report last month.

Robinhood stock chart
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Retail investors bought $18.9 million in Robinhood shares during its IPO debut, less than other high-profile launches, data shows

A graph shows how much money retail investors purchased in companies in the first day of trading.
Snap tops a list of net retail purchases on 1st trading days.

  • Individual investors bought $18.85 million in shares of Robinhood during the trading app’s debut on Thursday, Vanda Research said.
  • That’s lower than other major IPO debuts, including this year’s launch of Coinbase.
  • Robinhood ended its first trading session down by 8.4% and has continued its slide on Friday.
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Retail investors bought $18.85 million of Robinhood stock during the trading app’s first day in the public market, lower than other major IPO debuts, according to Vanda Research data released Friday.

Retail investors poured more money into this year’s launches of crypto exchange Coinbase and Chinese ride-hailing app Didi Global. In April, $57.4 million in Coinbase stock was purchased, and in June, that group picked up $69.8 million in Didi stock, said Vanda, whose VandaTrack arm watches activity in 9,000 individual stocks and ETFs in the US.

The $19.7 million of DoorDash shares purchased in the food delivery company’s December 2020 debut was just ahead of retail purchases of Robinhood stock.

Robinhood shares had a rough first session on Thursday, dropping 8.4% to end at $34.82 after being whipsawed. The IPO price of $38 was at the low end of its targeted range of $38 to $42 per share.

Social media app Snap tops the list at $143 million in shares purchased by retail investors, said Vanda. Snap went public in March 2017. Uber was right behind that, at $139.9 million in May 2019 for the ride-hailing app.

Robinhood bucked convention in its IPO by setting aside 35% of its shares for individual investors. The company earlier this year angered many of its customers when it halted buying of GameStop, AMC Entertainment and other meme stocks during a massive rally. Robinhood had pledged to earn back the trust of those customers. The company has more than 18 million accounts and 17.7 million active monthly users.

Among institutional investors, Cathie Wood’s ARK Innovation ETF exchange-traded fund bought nearly 1.3 million shares of Robinhood on Thursday, according to a daily trading report from Ark Investment Management. That logs a $45 million stake in Robinhood at the company’s closing price.

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Robinhood CEO says the meme-stock craze has helped ailing companies survive, and that high retail investor participation is fundamentally good for markets

Robinhood CEO Vlad Tenev stands in front of a window overlooking New York City.
Robinhood CEO Vlad Tenev.

  • Robinhood CEO Vlad Tenev told CNBC retail investors in meme stocks have helped struggling companies.
  • Tenev made his comments ahead of the trading app’s own trading debut.
  • Robinhood earlier this year angered many customers when it halted buying of GameStop, AMC, and other meme stocks.
  • See more stories on Insider’s business page.

Robinhood CEO Vlad Tenev said Thursday that retail investors who’ve put money into so-called meme stocks have been a benefit to struggling companies and the market overall.

“I think what’s interesting with what we’ve seen in retail investing over the past year is that a lot of these companies have been hit hard by the pandemic, right?,” including airlines, retailers, and movie chains, said Tenev in an interview on CNBC before the online brokerage’s own stock began trading.

“[You] have the institutions that are basically writing these companies off and then retail investors coming in and keeping them up and supporting them.”

Video game retailer GameStop and movie theater chain AMC Entertainment have become popular stocks among retail traders active on Reddit and Twitter. Tenev’s firm has been a force behind the retail trader movement, with millions of new investors funding accounts on the app during the pandemic.

There are “customers that love these companies they want them to thrive. And you’re seeing [companies] also get resources that allow them to hire really good management teams, in some cases, and then build for the future,” Tenev said.

AMC, the world’s largest movie-theater operator, has taken advantage of the rally in its shares this year, saying in June it had raised about $1.25 billion through selling shares during the second quarter and the funds would strengthen its balance sheet.

“I don’t know if people have understood the ramifications of what high retail participation in the markets means but I think fundamentally it’s a very good thing and we’re excited to be a part of it,” said Tenev.

Robinhood’s shares slumped 8.4% to $34.82 in their trading debut, finishing below the IPO price of $38. The company set aside up to 35% of its IPO shares to individual investors.

Robinhood angered many of its customers earlier this year when the trading app halted buying of GameStop, AMC, and other meme stocks during a stunning rally. Robinhood had pledged to earn back the trust of those customers. The company has more than 18 million accounts and 17.7 million active monthly users.

According to Goldman Sachs, retail investors have been on track to put $400 billion into the stock market in 2021.

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Robinhood drops 12% in volatile public-trading debut after IPO valuing it at $32 billion

Vlad Tenev, CEO and Co-Founder, Robinhood in his office on July 15, 2021 in Menlo Park, California.
Vlad Tenev, CEO and co-founder, Robinhood.

  • Robinhood whipsawed in its trading debut on Thursday, with shares initially jumping 6% before falling as much as 12%.
  • The online trading app was valued at $32 billion when it priced its IPO at $38 per share on Wednesday.
  • Robinhood raised $2.1 billion from its IPO and allocated a portion of shares to its user base.
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Online trading app Robinhood whipsawed in its post-IPO debut on Thursday, with shares climbing 6% before falling as much as 12%. Shares hit a high of $40.22 before falling to a low of $33.60.

The company priced its IPO late Wednesday night at $38 per share, representing the bottom end of its targeted range of $38 to $42 per share. The IPO raised $2.1 billion for the company and gave it a valuation of $32 billion.

Robinhood last raised $3.4 billion earlier this year, with shares trading on private secondary markets at a valuation around $40 billion. The company raised the money amid a surge in retail trading in meme-stocks like GameStop and AMC Entertainment.

The company has seen explosive growth amid the COVID-19 pandemic and government stimulus checks, with millions of Americans becoming first time investors in the stock market. Robinhood has more than 18 million accounts and 17.7 million active monthly users.

While the brokerage firm is not yet profitable, the company saw revenue grow 245% to nearly $1 billion in 2020. That revenue growth accelerated in the first quarter of 2021, surging 309% to $522 million, according to its S-1 filed with the SEC last month.

Much of that growth is coming from options and crypto trading, two highly speculative areas of markets than often lead to either big losses or massive fortunes.

Unique to Robinhood’s IPO is the company’s decision to allocate up to 35% of its IPO shares to users of its app. Retail investors are often restricted from investing in IPOs at the pricing afforded to institutional investors.

While Robinhood’s IPO represents a big milestone for the company, there is still a long way to go before co-founders Vlad Tenev and Baiju Bhatt can cash in on their hefty compensation awards. Both founders will be awarded $1.4 billion if Robinhood’s stock price reaches $101.50 by 2025.

Robinhood trades on the Nasdaq under the symbol “HOOD.”

Read more: Top 16 meme stocks this week on Reddit: Tesla tops the charts after record earnings while Chinese stocks get smacked amid brutal regulatory crackdown

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Robinhood is going public. Warren Buffett, Michael Burry, and other top investors have blasted the trading app and warned day traders to be careful.

Michael Burry against a gray promotional backdrop for the movie "The Big Short."
Michael Burry.

  • Robinhood is poised to go public on Thursday at a $32 billion valuation.
  • Warren Buffett, Michael Burry, and other top investors have blasted the trading app as reckless.
  • Market veterans have also warned day traders against rampant speculation and taking on debt.
  • See more stories on Insider’s business page.

Robinhood is set to go public on Thursday at a potential $32 billion valuation, capitalizing on booming demand from retail investors seeking to trade stocks, cryptocurrencies, and other assets during the pandemic.

The trading app is popular among amateur investors and day traders because it doesn’t charge commissions, allows fractional investing, and trusts its users to trade on margin and buy and sell risky, complex financial products such as options.

However, Warren Buffett, Michael Burry, and other leading investors have accused Robinhood and its peers of encouraging speculation and excessive risk-taking. They have also warned market newbies not to borrow too much, trade things they don’t understand, or treat investing like a game they’re guaranteed to win.

Robinhood didn’t immediately respond to a request for comment from Insider.

Here’s what 10 top investors have said about Robinhood and the day-trading boom. Their quotes have been lightly edited and condensed for clarity:

Warren Buffett

Warren Buffett
Warren Buffett, the chairman and CEO of Berkshire Hathaway.

“There’s nothing illegal about it, there’s nothing immoral. But I don’t think you build a society around people doing it. I hope we don’t have more of it.” — accusing Robinhood of encouraging users to trade options rather than invest for the long term. (May 2021)

Michael Burry

Michael Burry against a promotional backdrop for the movie "The Big Short."
Michael Burry, the star of “The Big Short” and head of Scion Asset Management.

“If you do not use #robinhood, you have to see it to understand what #gamification of #stonks/options means. So here it is. If this looks like a serious investing app to you, and NOT a dangerous casino ‘fun for all ages,’ you’ve been #gamified.” (February 2021)

 

Mark Cuban

Mark Cuban speaking at Business Insider's IGNITION conference on December 3, 2018.
Mark Cuban, the “Shark Tank” star and Dallas Mavericks owner.

“It’s not investing, and it’s almost not even trading, it’s more like revenge. It is the revenge of the nerd. It’s the revenge of the little guy.” — commenting on the horde of retail investors who sparked the meme-stock boom (February 2021)

“If you’re a day trader and you can walk and chew gum, you are making money right now. You’re doing the same thing they did in the late ’90s. You’re rolling it. You think everybody is a genius in a bull market.” (June 2020)

Chris Sacca

chris sacca
Chris Sacca, the founder of Lowercase Capital and an early investor in Uber, Twitter, and Instagram.

“I have axes to grind against a lot of the guys you’re wrecking, and I love to hear about real people stacking chips. But, please, from someone who has been there … don’t trade what you can’t afford to lose.” — advising the retail investors who executed short squeezes and hammered hedge funds to be careful (January 2021)

“To the angry Robinhood bros who got into trading stocks this year: I was wrong. You’re amazing. This has nothing to do with the market. It’s all you and your mad skillz. Don’t take profits off the table. Double down, on margin. Borrow everything you can. Stonks never go down!” — sarcastically responding to the backlash from day traders after he tweeted they got lucky and should cash out some of their profits (January 2021)

Charlie Munger

charlie munger
Charlie Munger, Warren Buffett’s business partner and Berkshire Hathaway’s vice-chairman.

“Robinhood is beneath contempt. It’s a gambling parlor masquerading as a respectable business. It’s basically a sleazy, disreputable operation.” (May 2021)

Leon Cooperman

Leon Cooperman holding his glasses up to his right temple.
Leon Cooperman, the former CEO of Omega Advisors, runs a family office now.

“They are just doing stupid things. This will end in tears.” — commenting on retail traders buying shares in bankrupt companies and making other high-risk trades (June 2020)

Jim Chanos

Jim Chanos
Jim Chanos, the president and founder of Kynikos Associates.

“They are going to trade themselves into oblivion. We are at prices now where the crowd that is betting on margin and betting through options had better be right. Anything that corrects and reverts to the mean, or to real valuation metrics, is going to destroy a whole generation of investors.” (November 2020)

Jeffrey Gundlach

Jeffrey Gundlach
“Bond King” Jeffrey Gundlach, the CEO of DoubleLine Capital.

“There’s been an incredible increase in tiny retail investor activity in terms of the accounts on Robinhood and other platforms that have just exploded in term of size. I think that’s pretty dangerous. These people that are buying slices of the stock market don’t even know what they’re doing, and have probably lost money already.” (June 2020)

“We’ll have a tremendous unwind of a lot of the money that thinks the stock market is a one-way thing.” (March 2021)

Howard Marks

Howard Marks
Howard Marks, the cofounder and co-chairman of Oaktree Capital Management.

“Some people think it’s a gambling game, like betting on football. It’s not healthy to have people who are buying stocks for fun. It reminds me of the people who were day trading in 1999 and declaring day trading a ‘can’t miss’ strategy. The tech stocks crapped out in 2000.” (June 2020)

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Robinhood prices IPO at $38 per share, valuing the online brokerage app at $32 billion

Robinhood on cellphone
  • Robinhood priced its IPO at $38 per share on Wednesday, valuing the company at about $32 billion.
  • The online brokerage app revealed surging growth in its S-1 filing amid the COVID-19 pandemic and government stimulus checks.
  • Robinhood is set to trade on the Nasdaq under the symbol “HOOD” on Thursday.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Robinhood priced its IPO at $38 on Wednesday, valuing the online brokerage app popular with retail investors at roughly $32 billion. The Wall Street Journal first reported the pricing.

Robinhood’s IPO pricing came it at the bottom end of the price range it had initially been targeting during its roadshow of $38 to $42 per share. Robinhood last raised $3.4 billion earlier this year, with shares trading on private secondary markets at a valuation around $40 billion.

The company has seen explosive growth amid the COVID-19 pandemic and government stimulus checks, with millions of Americans becoming first time investors in the stock market. Robinhood has more than 18 million accounts and 17.7 million active monthly users.

While the brokerage firm is not yet profitable, the company saw revenue grow 245% to nearly $1 billion in 2020. That revenue growth accelerated in the first quarter of 2021, surging 309% to $522 million, according to its S-1 filed with the SEC last month.

Much of that growth is coming from options and crypto trading, two highly speculative areas of markets than often lead to either big losses or massive fortunes.

Unique to Robinhood’s IPO is the company’s decision to allocate up to 35% of its IPO shares to users of its app. Retail investors are often restricted from investing in IPOs at the pricing afforded to institutional investors.

While Robinhood’s IPO represents a big milestone for the company, there is still a long way to go before co-founders Vlad Tenev and Baiju Bhatt can cash in on their hefty compensation awards. Both founders will be awarded $1.4 billion if Robinhood’s stock price reaches $101.50 by 2025.

Robinhood is set to trade on the Nasdaq under the symbol “HOOD” beginning on Thursday.

Read more: Top 16 meme stocks this week on Reddit: Tesla tops the charts after record earnings while Chinese stocks get smacked amid brutal regulatory crackdown

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Robinhood CEO says the company is all-in on crypto and that users can expect new crypto features at ‘some point’

Baiju Bhatt_Vlad Tenev_Co Founders and Co CEOs
Baiju Bhatt and Vlad Tenev cofounders and CEOs of Robinhood

  • Robinhood CEO Vlad Tenev says the company is focused on expanding its crypto offerings.
  • He said users can expect a crypto wallet at “some point.”
  • It’s a glimpse at the company’s future ahead of it’s highly anticipated IPO.
  • See more stories on Insider’s business page.

Robinhood CEO Vlad Tenev announced Saturday that crypto is a lynchpin of the retail investment app’s future, and a wallet could be in the works.

“We’ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they’ve been asking for,” he said. “We know you want wallets.”

Users can expect a beta release of new crypto features at “some point,” he said, but did not provide any further timeline. It’s a more tentative proclamation than he’s previously made. Back in March, Tenev promised users a crypto wallet “as fast as possible.”

Robinhood users currently can’t transfer crypto assets in and out of their account, potentially driving some customers to platforms like Coinbase. However, Tenev said that will be fixed as well.

“We want to introduce new features safely,” he said. “And there’s a lot of items we have to get right from the start.”

Tenev’s statements came during Robinhood’s public roadshow Saturday, where the company’s top executives fielded questions from the public about its upcoming IPO, planned for Thursday.

It’s been clear for awhile that Robinhood, founded in 2013, was veering into the crypto world. In the company’s S-1, it revealed that 17% of its first quarter revenue came from cryptocurrency transactions.

But the company has admitted that crypto trading might be a liability. Dogecoin made up 34% of Robinhood’s first quarter crypto-trading revenue, according to its IPO filing. If interest in the meme coin declines, the company said it could be a risk to the business.

Especially in light of the many, many headlines about the company, Robinhood’s IPO is highly anticipated. In its regulatory filing, the company said it’s aiming to raise as much as $2.3 billion, with a market valuation at $35 billion at the top range. In line with company’s mission to “democratize finance,” it will offer a third of its shares directly to customers through its app.

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Billionaire investor Leon Cooperman rules out an imminent market crash, trumpets ‘big tech’ stocks, and sounds the national-debt alarm in a new interview. Here are the 10 best quotes

Leon Cooperman holding his glasses up to his right temple.
Leon Cooperman.

  • Leon Cooperman dismissed fears of an imminent market downturn.
  • The billionaire investor defended “big tech” valuations and called for fiscal discipline.
  • Cooperman is wary of meme stocks and sees minimal value in owning government bonds.
  • See more stories on Insider’s business page.

Leon Cooperman ruled out an imminent market crash, warned that stimulus efforts are ballooning the national debt to dangerous levels, and emphasized the appeal of “big tech” stocks in a CNBC interview this week.

The billionaire investor, who converted his Omega Advisors hedge fund into a family office in 2018, also dismissed government bonds as virtually worthless and some meme stocks as ridiculously overvalued.

Here are Cooperman’s 10 best quotes from the interview, lightly edited and condensed for clarity:

1. “The conditions for a bear market are just not present. Bear markets don’t materialize out of immaculate conception.” – Cooperman pointed to recession fears and rising inflation as potential drivers of a downturn.

2. “Inflation becomes a problem when the central bank begins to fight inflation, because fighting inflation is tantamount to curbing growth.”

3. “We’ve already injected into the economy $1 trillion of stimulus in excess of wages lost. The central bank and the fiscal authorities are focused exclusively on employment, they’re not worried about the debt creation. I worry about it because debt’s growing too rapidly, it’s not sustainable. We are heading for a fiscal crisis one of these days. “

4. “The most dangerous instrument today is buying a long-term US government bond. Basically you’re getting your capital confiscated. I could buy a lot of stocks that have a much better valuation profile than the US government bond.” – noting that bonds are almost worthless when yields are low, 40% of any profit goes toward taxes, and inflation is trending at 3% or higher.

5. “There’s nothing overvalued in today’s interest-rate environment except the bonds. Look at Google, Facebook, Microsoft, Amazon – if you believe the economy’s gonna grow and interest rates are gonna stay where they are, they’re not overvalued.” – Cooperman’s family office owns shares of those four “big tech” companies.

6. “I’m a stock jockey, I like what I own. I’m having no trouble finding things that I wanna own. I have an eye on the exit because monetary policy and fiscal policy have pulled demand forward and this game and this party, when it ends, is not gonna end well.”

7. “These algorithms know nothing about value, they know everything about price. I try and bring some sanity to the picture.” – blaming increased volatility on quantitative trading and changes to market structures.

8. “It’ll be Fed speak, it’ll be inflation, it would be the overall performance of the economy, it would be gold and bitcoin which represent speculative fever, it would be the stock market itself. I watch everything like a hawk. Most importantly, I watch what I own.” – listing some of the factors that might lead him to cash out his holdings.

9. “Six or eight months from now, we’ll start to see liquidity coming out of the market and I’ll have a different view of the market.”

10. “I stay away from the Robinhood stocks. I don’t get the valuations, they’re crazy. Some of these Robinhood stocks, some of these 100x revenue stocks with no earnings, that’s where the correction has been greatest. And when I look at them, they still look overpriced.”

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