Robinhood is set to go public on Thursday at a potential $32 billion valuation, capitalizing on booming demand from retail investors seeking to trade stocks, cryptocurrencies, and other assets during the pandemic.
The trading app is popular among amateur investors and day traders because it doesn't charge commissions, allows fractional investing, and trusts its users to trade on margin and buy and sell risky, complex financial products such as options.
However, Warren Buffett, Michael Burry, and other leading investors have accused Robinhood and its peers of encouraging speculation and excessive risk-taking. They have also warned market newbies not to borrow too much, trade things they don't understand, or treat investing like a game they're guaranteed to win.
Robinhood didn't immediately respond to a request for comment from Insider.
Here's what 10 top investors have said about Robinhood and the day-trading boom. Their quotes have been lightly edited and condensed for clarity: