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This week, Tracey is joined by Zacks Stock Strategist, David Borun, to talk about the Robinhood IPO (HOOD - Free Report) and its stock.

What’s the actual Robinhood business?  David discusses where Robinhood gets its revenue and what it might mean for investors.

If you’re a user of Robinhood’s app, you might be surprised by the business model.

Consolidation in the Brokerage Industry

Robinhood isn’t the only player in the brokerage industry, obviously. It has seen consolidation in the last few years.

Schwab (SCHW - Free Report) now owns TD Ameritrade and Morgan Stanley (MS - Free Report) bought eTrade, the first online brokerage firm.

But Interactive Brokers (IBKR - Free Report) is also still a popular platform and David says their product “rivals what the pros use.”

Shares of Interactive Brokers have fallen 14% in the last 3 months and now trade with a forward P/E of just 20.4.

Tracey and David also talk about Robinhood’s influence on the meme stocks and whether it has democratized investing as millions of retail investors have started investing thanks to the app.