🏹 Robinhood IPO analysis

When 2% is high | Deliveroo's bouncy update |

Hi Reader, here's what you need to know for July 9th in 3:11 minutes.

☕️ Finimized over a hot chocolate at Smith the Grocer in Wellington, New Zealand (7°C/44°F 🌧)

Today's big stories

  1. The European Central Bank raised its inflation target to 2%
  2. Our analyst looks into whether Robinhood’s upcoming listing will make for a good investment – Read Now
  3. Food delivery firm Deliveroo upgraded its sales growth forecast, initially sending its shares higher

Upping The Ante

Upping The Ante

What’s Going On Here?

The European Central Bank (ECB) raised its inflation target on Thursday in a high-stakes gamble on the future health of the continent’s economy.

What Does This Mean?

For the past 18 years, the ECB’s aimed for annual price rises to come in “below but close to 2%” – an objective it’s undershot for almost a decade. Now, however, Europe’s central bank is opting for a more tangible target of 2% flat. That’s a slight escalation on paper – but may be greater in reality, given that the ECB has said it’ll allow inflation to overshoot when economic conditions require it.

The increase allows the Bank to carry on with its current policies of ultra-low interest rates and ultra-large bond buying, supporting the European economic recovery even if that means higher inflation in the short term. But Thursday’s strategic shift went deeper: the ECB is also sharpening its focus on climate change, including by taking into account sustainability criteria when purchasing company bonds (tweet this).

Why Should I Care?

For markets: Infectious? Hold ‘Em.
The prospect of more quantitative easing and lower rates for longer helped European government bonds rally on Thursday. But investors also fled to their relative safety as stock markets sank on fears that fresh restrictions to counter the fast-spreading Delta variant of coronavirus could take the shine off the global economic recovery.

The bigger picture: Casino Royale.
The world’s major central banks are at sixes and sevens over how to withdraw extraordinary economic support measures introduced at the height of the pandemic. The ECB gave no indication as to when it’ll start raising interest rates again – but the US central bank reckons it’ll have increased them twice by 2023. China, meanwhile, hinted earlier this week that it may soon reduce the amount of cash its banks have to keep in reserve, boosting local lending. The big risk for the ECB is that it’s caught out by another economic hiccup before things get back to normal.

Copy to share story: https://www.finimize.com/wp/news/upping-the-ante/

🙋 Ask a question

2. Analyst Take

Should You Invest In Robinhood’s IPO?

What’s Going On Here?

Robinhood is one of Silicon Valley’s most valuable and fastest-growing startups.

And the fintech firm that pioneered commission-free stock trading is soon selling shares of its own in an initial public offering that could value the company as high as $40 billion.

But the big question is: will it make a good investment?

There are factors in its favor, including impressive recent growth. But there are reasons to steer clear too – not least major regulatory risk.

With this in mind, it’s important to assess whether Robinhood’s $40 billion valuation is justified.

So that’s today’s Insight: how much Robinhood should really be worth – and whether you should buy in.

Read or listen to the Insight here


Simple, stress-free investing

InvestEngine’s new commission-free DIY portfolio service is a great way to make your money work harder.

Here’s how InvestEngine DIY works:

First, choose from a range of best-in-class exchange-traded funds (ETFs). They’re all handpicked by InvestEngine’s expert investment team to offer both great value and wide diversification.

Second, set the weight of each ETF in your portfolio. You can tweak according to your risk appetite, or put more emphasis on stocks, bonds, or commodities – all in no time with InvestEngine’s app.

Third, get investing – and when you need to rebalance, it’ll take just one click: InvestEngine’s technology will buy and sell ETFs for you to bring your portfolio back to its target weighting.

InvestEngine will even give you a welcome bonus: get your £50 bonus here.

Get Your Bonus

Disclaimer: Capital at risk. Welcome bonus terms and conditions apply, subject to minimum investment. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128]

Tie Deliveroo Down, Sport

Tie Deliveroo Down, Sport

What’s Going On Here?

Food delivery app Deliveroo raised its revenue growth forecast on Thursday – but it wasn’t enough to stop investors throwing its stock on the barbie.

What Does This Mean?

Doorbell dining has been one of the biggest winners of the pandemic, with would-be eater-outers forced to eat in instead. But as restaurant restrictions recede, so too has Deliveroo’s growth. While gross transaction value, a.k.a. GTV – the total amount of customer spending in the company’s app – rose 130% in the first quarter of 2021 compared to 2020, it was just 76% higher in the second quarter.

Investors had been expecting that growth to slow further still – but Deliveroo’s latest figures suggest things won’t be as bad as thought. The firm now anticipates GTV to be 50-60% higher than last year across the whole of 2021, up from previous forecasts of 30-40%. That positive update initially sent Deliveroo’s beleaguered share price up 5% on Thursday – before broader market declines helped drag it back down into negative territory.

Why Should I Care?

The bigger picture: Apples and oranges.
GTV growth is one thing, but profitability is another – and Deliveroo also warned extra investment in unspecified “growth opportunities” would hurt its profit margin this year. It’s previously shown interest in setting up more takeout-only kitchens, as well as grocery delivery partnerships with major supermarket chains. While investors may balk at the expenditure involved, Deliveroo’s controversial dual-class share structure means the company’s executives can press ahead regardless.

Zooming out: Dim sums.
Deliveroo’s share structure was one reason its initial public offering (IPO) flopped – and its shares remain stubbornly below their opening-day price. But Chinese IPOs on US stock exchanges are flopping for a different reason: the Chinese government is cracking down further on overseas listings, just days after it hit Didi with a blindside that sent the ride-hailing firm’s shares down 20% from its own IPO price.

Copy to share story: https://www.finimize.com/wp/news/tie-deliveroo-down-sport/

🙋 Ask a question

💬 Quote of the day

“I’m sick of following my dreams, man. I’m just going to ask where they’re going and hook up with ’em later.”

– Mitch Hedberg (an American stand-up comedian)
Tweet this


The best way to get into options

If you’re new to options trading, here’s a good place to start.

It’s SimplerTrading’s “Understanding Options” eBook, and you can get it for free today.

It’ll show you how to:

Plus, you’ll pick up the only options terms you really need to know to be successful. We’re not kidding: there are a lot of buzzwords out there…

Did we mention it’s free? Get your eBook here.

Get Your Free eBook

When you support our sponsors, you support us. Thanks for that.

🎯 On Our Radar

  1. ETF investors’ new go-to. Handpicked investments, global diversification, no commission: InvestEngine’s new DIY portfolios are a must-have.*
  2. 56% of UK millennials are tired of their wealth manager. It’s time to grow your wealth sustainably, minus hours of research, all in one app – and they’re crowdfunding.*
  3. Ever considered quitting your job? Read this.
  4. Earn crypto without doing anything. Let The School of Block walk you through earning a passive income with crypto.*
  5. Chronic pain in and of itself? It’s not all in your head.

When you support our sponsors, you support us. Thanks for that.

🌎 Finimize Live Events

🍷 Feeling fancy?

Do you ever pick up a glass with your pinky sticking out, or say things like “Mmm, I’m getting hints of… pear”? If so, How To Invest In Wine is probably the event for you: you’ll find out how to become a fine wine collector from the CEO of Benchmark Wine and learn everything from the best brands to the best regions to invest in.

💰 How To Make Crypto Work For You: 6pm UK time, July 14th
🤔 What Does Inflation Mean For Your Portfolio: 2pm UK time, July 15th
🍷 How To Invest In Wine: 6pm UK time, July 19th
🌍 Why It Might Be A Good Time To Buy Emerging Market Stocks: 5pm UK time, July 20th
💥 How To Profit From The Commodities Boom: 1pm UK time, July 21st
👟 How To Invest In Sneakers And Streetwear: 1pm UK time, July 22nd
🌿 How To Invest In The Future Of Cannabis: 6pm UK time, July 23rd
📈 How To Protect Yourself From Rising Prices: 6pm UK time, July 26th
👑 How To Invest Like The Ultra-Wealthy: 5pm UK time, July 28th
🌎 How To Profit From Emerging Markets: 6pm UK time, July 28th
🏙 Investing In A Sustainable Metropolis: 11am UK time, July 29th
💰 How To Make Money From Money: 3pm UK time, August 4th
🤔 Are You An Investor Or A Trader?: 12pm UK time, August 25th

❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:


You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Dugger94621 - Shutterstock | Alena Veasey - Shutterstock


Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails


Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

👃 Smells like an oil price war

Tuesday, July 6, 2021

OPEC+ fight dirty | Carmakers change tact | TOGETHER WITH Hi Reader, here's what you need to know for July 7th in 3:10 minutes. 🌎 We're six months into the year, so now seems as good a time as

😭 Leave Didi alone

Monday, July 5, 2021

Didi's American vacation might end early | Morrisons is very popular | TOGETHER WITH Hi Reader, here's what you need to know for July 6th in 3:10 minutes. 🙌 A company that invests in people is

 🤭 Robinhood reveals all

Sunday, July 4, 2021

Tell me no lies, Robinhood | Give me jobs, or give me cake | TOGETHER WITH Hi Reader, here's what you need to know for July 5th in 3:11 minutes. ☕️ Finimized over a strawberry banana smoothie at

👀 Join the private party

Thursday, July 1, 2021

Oiling the wheels | Private goes public | TOGETHER WITH Hi Reader, here's what you need to know for July 1st in 3:05 minutes. 💪 If you agree that sharing is caring, then do we have an event for you

😎 Crypto pays a salary

Wednesday, June 30, 2021

Didi says hello | 'Tis the earnings season | TOGETHER WITH Hi Reader, here's what you need to know for July 1st in 2:54 minutes. 🐦 Join us live on Twitter Spaces at 6pm UK time / 1pm NY time on

Fintech News Issue #323

Thursday, August 5, 2021

Draper Esprit, P2P Landing Change, Crypto Lobby, Stablecoins, 7 Insurtechs with Multibillion-Dollar Valuations, Square buys Afterpay See Online Issue 323 2021-08-05 People have too many accounts these

What's this craze about "Buy now pay later" companies?

Thursday, August 5, 2021

Finshots What's this craze about "Buy now pay later" companies? US payments giant Square recently agreed to pay an eye-popping $29 billion to acquire an Australian “Buy now pay later”

Booster shot ban

Wednesday, August 4, 2021

Bloomberg One-fifth of one billion. That's how many coronavirus infections have been confirmed since the pathogen began spreading in earnest 20 months ago, with the actual number almost certainly

💔 Robinhood doesn't love you back

Wednesday, August 4, 2021

Recall me once, shame on you, recall me twice... | Sony saves its progress | TOGETHER WITH Hi Reader, here's what you need to know for August 5th in 3:11 minutes. 😎 Head to our next Crowdfunding

FTT Update: This Newsletter Isn't A Meme Stock (Yet)

Wednesday, August 4, 2021

​ ​ ​ Hi all, Julie here. Writing this in between a lot of meetings today. Thanks again to Public.com for having me on your live event to talk about BNPL! Was fun having a clubhouse-like product built

Go the extra distance with a coach

Wednesday, August 4, 2021

Get 10% off your first coaching session. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Why is El Salvador embracing Bitcoin and why doesn’t IMF approve?

Wednesday, August 4, 2021

Finshots Why is El Salvador embracing Bitcoin and why doesn't IMF approve? In today's Finshots we discuss El Salvador's experiment with Bitcoin and understand why IMF believes this might be

SEC targets crypto

Tuesday, August 3, 2021

Bloomberg Washington, Wall Street and Silicon Valley all want to know: where does Securities and Exchange Commission Chair Gary Gensler stand on cryptocurrency? In an exclusive interview with Bloomberg

😢 China to outlaw fun

Tuesday, August 3, 2021

At least we still have Tetris | European oil companies not good enough for ya, huh? | TOGETHER WITH Hi Reader, here's what you need to know for August 4th in 3:04 minutes. 😎 Our next Crowdfunding

FTT+: Is BNPL A Feature? Standalone? Both?

Tuesday, August 3, 2021

​ ​ What's up everyone—happy Tuesday! No playlist today as I've just been listening to random Drake songs over the past week. I was trying to have a relatively chill Sunday when some huge news