Robinhood Is Laying Off 9% of Its Full-Time Employees

wsj.com

3 pointsgnicholas2 comments

> Shares fell 5% in after-hours trading closing Tuesday after the company announced the layoffs in a blog post.

I thought layoff announcements are typically followed by stock price bumps, on the reasoning that the company will have lower costs?

Perhaps here the thinking is that the move signals troubles that were previously not priced in?

> Perhaps here the thinking is that the move signals troubles that were previously not priced in?

Probably, yeah. Their earnings call is later this week and it's reasonable to assume that layoffs signal bad earnings.