Billionaire investor Leon Cooperman has predicted a stark reckoning for amateur investors who are piling money into stocks with commission-free apps like Robinhood. 'They are just doing stupid things, and in my opinion, this will end in tears,' Cooperman told CNBC on Monday, referring to a flood of new retail investors into online brokers, in particular the millennial-favored Robinhood. Under the slogan 'democratizing finance for all,' the Robinhood app has forced traditional brokers such as Charles Schwab to offer commission-free online trading in order to compete. Data from Robintrack, a site that tracks activity on the Robinhood app, showed Hertz was topping the leaderboard for highest changes in popularity among retail traders. Robinhood traders are betting on how high they can push the stock before it collapses.

Source: Daily Mail June 16, 2020 21:21 UTC