“I am pessimistic about the valuations of brokerages around the world, including that of Zerodha. This is because the performance of broking is directly tied to market performance. If people aren’t making money or there is no greed, activity usually drops off a cliff,” Nithin Kamath tweeted.
I am pessimistic about the valuations of brokerages around the world, including that of Zerodha. This is because th… https://t.co/t2NLa0VVRM
— Nithin Kamath (@Nithin0dha) 1633084518000
This comes close on the heels of a note released by JPMorgan analysts that said online discount brokerage Robinhood stock could
crash 22% in the coming months after millions of more shares are added to the market.
Kamath said the best tech, products and low pricing won’t help.
“A new report from JPMorgan on Robinhood (RH) said that app downloads are down by 78% Q-o-Q and active users by 40% Q-o-Q. And this is still a bull market, just that market has plateaued last few months,” he tweeted.
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For Robinhood, unlike Indian brokerages, crypto is the wild card, Kamath said, adding that the stock price would’ve collapsed on this data.
I don’t understand other sectors as well. But when brokerages globally, relying on retail customers to grow are get… https://t.co/HCBtOoi0og
— Nithin Kamath (@Nithin0dha) 1633084520000
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