Robinhood goes down, missing an entire trading day due to a ‘system-wide outage’

Robinhood goes down, missing an entire trading day due to a 'system-wide outage'


Robinhood, a stock app popular with millennials, crashed when markets opened on Monday, and missed the entire trading day. The stock trading app’s status is still down, its outage prompting thousands of furious investors to vent on social media, as they wonder when Robinhood will be back up.

“We’re experiencing downtime, and are working to resolve this as quickly as possible,” a Robinhood spokesperson said in a statement provided to Fortune.

The spokesperson also urged users to check for updates on a status page (status.robinhood.com) that on Monday described a “System-Wide Outage” across all of Robinhood’s apps, trading and banking services.

Robinhood has been tight-lipped about the outage’s cause, though the company noted on its status page that it had identified the issue as of 22:18 am Eastern Time.

Missing the entire stock trading day is an unprecedented situation for the company, and one almost unheard of in the brokerage industry, where outages that last minutes are enough to cause a hubbub.

A possible cause of the Robinhood outage is a surge in volume spurred by investors spooked by gyrations in the market related to news of the coronavirus.

According to an executive from Apptopia, a service that analyzes apps, the number of active daily Robinhood users has been “skyrocketing” since early January. The executive added it’s unclear if most of these Robinhood account holders are buying or selling.

Robinhood’s outage comes at an awkward time for the company, which had been distancing itself from several controversies last year, and recently touted growth that saw the app top more than 10 million users.

Meanwhile, the startup must persuade investors it can grow into a $7.6 billion valuation, even as traditional brokerage rivals have started to match its zero-fee commission model.

The goodwill Robinhood enjoys with millennial customers, who have flocked to its sleek design and feel-good ethos, is likely to be tested by the stock-trading app going down, which has led to users besieging Robinhood’s Twitter accounts with complaints.

Numerous users have also complained on Twitter that Robinhood outage had hurt their ability to profit from trading, with some suggesting they would take legal action.

Robinhood’s services remained down as of 4:00pm ET on Monday. Fortune will update when the service resumes.

More must-read stories from Fortune:

—Coronavirus spreads to a previously healthy sector: corporate earnings
—A Fed rate cut won’t cure what’s ailing the stock market
—How companies like Ernst & Young are going to extremes to avoid infections
—These cities have the most jobs with six-figure salaries
—Credit Karma was acquired rather than pursuing an IPO. Will more companies follow suit in 2020?

Subscribe to Fortune’s Bull Sheet for no-nonsense finance news and analysis daily.





Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

GET OUR WEEKLY TIPS ON HOW TO GET AHEAD!