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Robinhood lets you invest as little as 1 cent in any stock – TechCrunch

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One share of Amazon stock costs more than $1,700, locking out less-wealthy investors. So to continue its quest to democratize stock trading, Robinhood is launching fractional share trading this week. This lets you buy 0.000001 shares, rounded to the nearest penny, or just $1 of any stock, with zero fee.

The ability to buy by millionth of a share lets Robinhood undercut Square Cash’s recently announced fractional share trading, which sets a $1 minimum for investment. Robinhood users can sign up here for early access to fractional share trading. “One of our core values is participation is power,” says Robinhood co-CEO Vlad Tenev. “Everything we do is rooted in this. We believe that fractional shares have the potential to open up investing for even more people.”

Fractional share trading ensures no one need be turned away, and Robinhood can keep growing its user base of 10 million with its war chest of $910 million in funding. As incumbent brokerages like Charles Schwab and E*Trade move to copy Robinhood’s free stock trading, the startup has to stay ahead in inclusive financial tools. In this case, though, it’s trying to keep up, since Schwab, Square, Stash and SoFi all launched fractional shares this year. Betterment has actually offered this since 2010.

Robinhood has a bunch of other new features aimed at diversifying its offering for the not-yet-rich. Today its Cash Management feature it announced in October is rolling out to its first users on the 800,000-person wait list, offering them 1.8% APY interest on cash in their Robinhood balance plus a Mastercard debit card for spending money or pulling it out of a wide network of ATMs. The feature is effectively a scaled-back relaunch of the botched debut of 3% APY Robinhood Checking a year ago, which was scuttled because the startup failed to secure the proper insurance it now has for Cash Management.

Additionally, Robinhood is launching two more widely requested features early next year. Dividend Reinvestment Plan (DRIP) will automatically reinvest into stocks or ETF cash dividends Robinhood users receive. Recurring Investments will let users schedule daily, weekly, bi-weekly or monthly investments into stocks. With all this, and Crypto trading, Robinhood is evolving into a full financial services suite that will be much harder for competitors to copy.

Robinhood Debit Card

How Robinhood fractional shares work

“We believe that if you want to invest, it shouldn’t matter how much money you have. With fractional shares, we’re opening up a whole universe of stocks and funds, including Amazon, Apple, Disney, Berkshire Hathaway, and thousands of others,” Robinhood product manager Abhishek Fatehpuria tells me.

Users will be able to place real-time fractional share orders in dollar amounts as low as $1 or share amounts as low as 0.000001 shares rounded to the penny during market hours. Stocks worth over $1 per share with a market capitalization above $25 million are eligible, with 4,000 different stocks and ETFs available for commission-free, real-time fractional trading.

“We believe that participation is power. Since day one, we’ve focused on breaking down barriers like trade commissions and account minimums to help people participate in the financial system,” says Fatehpuria. “We have a unique user base — half our customers tell us they’re first-time investors, and the median age of a Robinhood customer is 30. This means we have a unique opportunity to expand access to the markets for this new generation.”

Robinhood is racing to corner the freemium investment tool market before other startups and finance giants can catch up. It opened a waitlist for its U.K. launch next year, which will be its first international market. But in just the past month, Alpaca raised $6 million for an API that lets anyone build a stock brokerage app, and Atom Finance raised $12.5 million for its free investment research tool that could compete with Robinhood’s in-app feature. Meanwhile, Robinhood suffered an embarrassing bug, letting users borrow more money than allowed.

The move fast and break things mentality triggers new dangers when introduced to finance. Robinhood must resist the urge to rush as it spreads itself across more products in pursuit of a more level investment playing field.



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Oracle now monitoring TikTok’s algorithms and moderation system for manipulation by China’s government – TechCrunch

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Oracle has begun auditing TikTok’s algorithms and content moderation models, according to a new report from Axios out this morning. Those reviews began last week, and follow TikTok’s June announcement it had moved its U.S. traffic to Oracle servers amid claims its U.S. user data had been accessed by TikTok colleagues in China.

The new arrangement is meant to allow Oracle the ability to monitor TikTok’s systems to help the company in its efforts to assure U.S. lawmakers that its app is not being manipulated by Chinese government authorities. Oracle will audit how TikTok’s algorithm surfaces content to “ensure outcomes are in line with expectations,” and that those models have not been manipulated, the report said. In addition, TikTok will regularly audit TikTok’s content moderation practices, including both its automated systems and its moderation decisions where people are choosing how to enforce TikTok policy.

TikTok’s moderation policies have been controversial in years past. In 2019, The Washington Post reported TikTok’s U.S. employees had often been ordered to restrict some videos on its platform at the behest of Beijing-based teams, and that teams in China would sometimes block or penalize certain videos out of caution about Chinese government restrictions. That same year, The Guardian also reported TikTok had been telling its moderators to censor videos that mentioned things like Tiananmen Square, Tibetan independence, or the banned religious group Falun Gong, per a set of leaked documents. In 2020, The Intercept reported TikTok moderators were told to censor political speech in livestreams and to suppress posts from “undesirable users” — the unattractive, poor or disabled, its documents said.

All the while, TikTok disputed the various claims — calling leaked documents outdated, for instance, in the latter two scenarios. It also continued to insist that its U.S. arm didn’t take instructions from its Chinese parent, ByteDance.

But a damning June 2022 report by BuzzFeed News proved that TikTok’s connection to China was closer than it had said. The news outlet found that U.S. data had been repeatedly accessed by staff in China, citing recordings from 80 TikTok internal meetings.

Following BuzzFeed’s reporting, TikTok announced that it was moving all U.S. traffic to Oracle’s infrastructure cloud service — a move designed to keep TikTok’s U.S. user data from prying eyes.

That agreement, a part of a larger operation called “Project Texas,” had been in progress for over a year and was focused on further separating TikTok’s U.S. operations from China, and employing an outside firm to oversee its algorithms.

Now, it seems Oracle is in charge of keeping an eye on TikTok to help prevent data emanating from the U.S. from being directed to China. The deal steps up Oracle’s involvement with TikTok as not only the host for the user data, but an auditor who could later back up or dispute TikTok’s claims that its system is operating fairly and without China’s influence. 

Oracle and TikTok have an interesting history. Towards the end of the Trump administration, the former president tried to force a sale between the two companies, bringing in long-time supporter, Oracle founder and CTO Larry Ellison to help broker the deal for his company. That deal eventually fell apart in February 2021, but the story didn’t end there, as it turned out.

But while this new TikTok-Oracle agreement has significance in terms of the tech industry and in politics, Oracle’s deal with TikTok doesn’t necessarily make the firm a more powerful player in the cloud infrastructure market.

Even with TikTok’s business, Oracle’s cloud infrastructure service represents just a fraction of the cloud infrastructure market. In the most recent quarter, Synergy Research, a firm that tracks this data, reported the cloud infrastructure market reached almost $55 billion with Amazon leading the way with 34%, Microsoft in second with 21%, and Google in third place with 10%. Oracle remains under 2%, says John Dinsdale, who is a principal analyst at the firm.

“Oracle’s share of the worldwide cloud infrastructure services market remains at just below 2% and has shown no signs of meaningful increase. So Oracle’s cloud revenue growth is pretty much keeping pace with overall market growth,” Dinsdale told TechCrunch. Synergy defines “cloud infrastructure services” as Infrastructure as a Service, Platform as a Service and hosted private cloud services. Dinsdale points out that Oracle’s SaaS business is much stronger.”

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Spotify prompts some users to record reaction podcasts to playlists – TechCrunch

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After testing new in-app podcast recording tools for users in New Zealand, Spotify is now trialing a new audio feature in Vietnam, one that’s designed to encourage users to record voice reactions to playlists.

A Reddit user posted screenshots of the feature, showing how they received a prompt to react to a playlist with a voice clip that will be posted as a podcast episode. As per its previous test in New Zealand, it’s fair to assume that these reaction ‘podcasts’ will be published directly to creators’ personal profilers where followers will be able to listen.

The screenshots show that users included in the test are seeing a microphone icon on playlist screens, and upon tapping that, they see a new screen that prompts them to record a voice reaction to the playlist.

Users are seeing a mic icon to record a voice reaction to a playlist Image Credits: Reddit (opens in a new window)

Spotify recording prompt

Image Credits: Reddit (opens in a new window)

Once they hit the button, they can either record in one go or multiple clips by pausing. Later, they can edit the clip, add background music, and tag the playlist before publishing.

This workflow is similar to the test in New Zealand, except in that test, the starting point was a “Record Podcast” button on the home screen. So this test is more about giving a prompt to users who might not have a podcast idea in their mind.

Spotify podcast

Spotify shows some rules creators must follow for podcast recording for safety Image Credits: Reddit (opens in a new window)

Spotify has confirmed the test, but the company didn’t share any details about what locations the feature is available, and how it plans to moderate these voice reactions.

“At Spotify, we are always looking for ways to enhance our users’ experience on our platform, and we regularly test features that we believe will bring value to listeners and creators. We are currently running a limited test of in-app audio creation, but have no further details to share at this time,” the company said in a statement to TechCrunch.

As we noted in our story in June, a lot of these features are powered by Spotify-owned podcast creation app Anchor. These tests indicate that the streaming giant is trying to convert listeners to creators by providing them with easy in-app tools to make and publish podcasts.

In its Q2 2022 earnings last month, Spotify said it now has 4.4 million podcasts on the platform, and users engaging with them have grown at a “substantial double digits year-on-year.” Spotify has invested more than $1 billion in podcasting in the last few years with €83 million ($84.3 million) invested this year alone to acquire podcast analytics companies Podsights and Chartable.

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Bumble experiments with group chats, polls and video calls for its new social networking feature, ‘Hive’ – TechCrunch

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Dating app maker Bumble revealed more of its plans to strengthen its social networking features during last week’s Q2 earnings, which saw the company’s shares slump over its lowered financial outlook despite delivering a revenue beat. Now, new images show what Bumble has been developing as part of the larger revamp of its “Bumble BFF” friend-finding feature — a change that could help the app attract a new audience beyond just young singles. Specifically, Bumble BFF has been testing a new “communities” offering it’s calling “Hive,” which, the images show, may include support for features like group chat, polls and video calls.

Bumble briefly referenced its plans for Hive on its Q2 2022 earnings call with investors, noting Hive was a “next-generation offering” focused on helping people find “platonic connections through small communities.” In other words, a groups product.

“As we have shared before, our approach is built on the insight that people want to find friends, acquaintances and connections through shared struggles and common joys: moving to a new city, navigating parenthood, finding a partner for hiking, or really anything else in between,” founder and CEO Whitney Wolfe Herd told investors.

She noted Bumble had recently expanded its alpha tests of the new Bumble BFF feature to the Greater Toronto area where Bumble users have since created thousands of these online communities known as “Hives.”

Image Credits: Bumble Hives via Watchful

The promise of platonic social networking is one the company believes could help it find engagement beyond the world of online dating. During its tests, Bumble said the weekly average number of sessions for BFF members increased by two-thirds, and their weekly time spent in-app was up 16%.

According to new images released by product intelligence firm Watchful, Bumble’s Hive includes a variety of now-standard social networking features. It shows BFF members can create profiles, join interest groups led by admins, publish posts, engage in group chats, create and respond to polls and more. There’s also an option for group video calls within the “Hives.”

Image Credits: Bumble Hives via Watchful

Video is not entirely new to Bumble, however.

The company also told investors it has been testing both video and audio in select markets as a way to enhance member profiles with “richer and more dynamic” content. This could additionally help Bumble better compete against a growing number of video-focused dating apps, like Snack, S’More, Desti and others.

Image Credits: Bumble Hives via Watchful

More broadly, Bumble’s latest updates aim to address the shift among younger, Gen Z users who are inclined to embrace apps that allow them to socially “hang out” online — like livestreaming app Yubo and various friend-finders, including those that help them make new friends on Snapchat and elsewhere, such as Hoop, Wink, Wizz, Qudo, Wave, LMK, Swipr and Vibe, among others. Dating giant Match also embraced this trend with its $1.73 billion deal for Hyperconnect, a company that had been more focused on social networking than dating. However, that investment has not yet paid off beyond bringing audio and video technologies to various Match dating apps.

Bumble was unable to provide a statement on the new Hive features, when reached for comment.

In Q2, Bumble reported $220.5 million in revenue in its most recent quarter, ahead of Wall Street estimates, but saw a loss of 3 cents per share versus the 1 cent loss expected. It also lowered its full-year revenue forecast citing increased competition with Match, the war in Ukraine, inflation and foreign exchange headwinds.

In addition to Bumble BFF’s Hive, the company is working on new astrology features, product enhancements for LGBTQIA+ users, tests of “messaging before match” features, audio and video features, and other monetization products.

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