As more young investors turn to apps like Robinhood, Acorns, and Stash, business news outlets are vying for the eyes of those young investors. Just recently major business news powerhouse CNBC announced a strategic partnership with popular microinvesting app Acorns. This strategic partnership meant that investment guidance from some of CNBC’s biggest names on the network would be appearing on both CNBC’s new “Invest in You” section of their site as well as Acorns’ investment blog GROW which is currently in the top 20,000 websites in the world according to Alexa rankings.
However, there seems to be stiff competition brewing from Silicon Valley as popular stock trading app Robinhood as announced its acquisition of startup financial newsletter & podcast Marketsnacks. Founded in 2012 by CEO’s Jack Kramer & Nick Martell, MarketSnacks’ goal was to deliver financial news to millennials in an easy to understand format. This would be beneficial to young investors who may not fully understand complex topics about the markets and their daily happenings. The company would deliver this content in two forms, one was a traditional newsletter that those interested could sign up on their website, and the other would be in a podcast form that anyone could listen to wherever they get their podcasts.
Robinhood was founded in 2013 by Baiju Bhatt and Vladimir Tenev, and they set out to disrupt the stock trading industry, currently run by giants like TD Ameritrade, Fidelity, and Charles Schwab. The biggest way they did this was the elimination of commission fees entirely, allowing users to buy stocks at the prices they saw at the current time. They also boasted the ease of use of their applications both on iOS and Android, with the web version not coming around until late October of 2017. Another thing that Robinhood likes to talk about is their referral system where if someone were to sign up for a Robinhood account with your referral link, you and your friend would be able to get a free share in any random stock be it Ford, Sprint, Apple, SiriusXM, etc. Since July of 2017 they have had over 1 million users trading stocks on the platform.
This acquisition means that Kramer and Martell will join Robinhood as Managing Editors of News and will have “Editorial Independence from Robinhood” as claimed by Martell in a recent interview with Fortune magazine. For Robinhood this makes the platform an even bigger one stop shop for everything investing. You can read the full details of the acquisition and sign up to Robinhood Snacks here.
Sources: CNBC, Robinhood