A few weeks ago, Schwab lowered their commissions to zero and the stock fell hard. The stock had been falling for the last 12 months.

NYU Professor Galloway said the following:

Until yesterday, Robinhood was a disruptor. But Schwab announced they were eliminating commissions on trades, and Robinhood’s top of the funnel (customer acquisition) collapsed. Schwab has other products/revenue streams. Robinhood’s VCs must now fund a company whose $7.6 billion valuation (see above: white powder around nostrils) was cut in half yesterday. Similar to Walmart, Schwab’s leadership will result in multiple expansion. Look for Schwab stock to recover its 8 percent one-day loss within 30 days.

I wrote a post titled ‘Dear Professor Galloway …Let’s Talk about Schwab and Robinhood‘.

I continue to disagree with everything Professor Galloway says here BUT, he made one hell of a stock call as Schwab has after two weeks recovered the full 8 percent one day loss.

I hope he continues to share his trade ideas.

Seeing that I am talking about the professor, this latest post from him is good titled ‘MARGINal‘.

Have a great Tuesday.

PS – I loved this post from Ben Hunt titled ‘To My Fellow Billionaires‘