Josh Brown Calls Robinhood An Online Gambling Platform, Helped Propped Up By Dogecoin

Robinhood Markets Inc HOOD began trading publicly on the Nasdaq Thursday afternoon.

Robinhood is an online gambling platform rather than an investing platform, Ritholtz Wealth Management CEO Josh Brown said Thursday on CNBC.

Brown said he doesn't have any interest in investing in the stock; he would prefer to invest in DraftKings Inc DKNG.

Robinhood is inferior to almost all of the other publicly traded brokerages, Brown said.

See Also: Robinhood Stock Opens At $38, Initially Trades Below IPO Price

A majority of the company's revenue comes from payments for order flow, which is essentially allowing "one group of investors to take advantage of another group of investors," Brown said.

"I'm not sure that's the kind of thing that I want to personally invest in," he added.

A lot of the revenue growth over the last year has come from Dogecoin DOGE/USD trading, Brown noted. One could argue Dogecoin and other alt-coin trading will continue and margins will remain high, but he doubts it will continue.

"We are probably coming off the best year Robinhood will ever have," Brown emphasized.

HOOD Price Action: At last check Thursday, Robinhood was down 8.4% at $374.81.

Photo: Tech Daily from Flickr.