Jim Cramer weighs in on the consumer ahead of the holiday season and how Robin Hood turned E*Trade into a dinosaur.
Is E*Trade Just a Dinosaur?
"The fact that Robinhood was able to raise $912 million, the last tranche received at the end of October, at a $7.6 billion valuation, told you the writing was on the wall, something that may also be the case for E-Trade, which, despite its venerable status as one of the first e-brokers and its $4 in earnings power, has a less than $10 billion valuation. Exact numbers are hard to come by, but Robinhood is thought to have almost as many accounts as E-trade, even as E-Trade, born in 1982, is thirty-one years older than Robinhood," wrote Cramer.
How's the Consumer?
As of Tuesday, Nov. 12--based on Adobe Analytics data--$19.7 billion had been spent during the holiday season so far, representing a 17.5% increase year-over-year.
"Holiday shopping has begun in earnest with consumers pouring onto retailers' websites to find the early deals of the season. All signs point to strong sales growth this year, with consumers buying almost 50% more than last year just through their phones. And this may be one of the best years for consumers to date as promotional price discounts are much deeper than they were at this time last year - TV prices alone are down nearly 15% from October," said Taylor Schreiner, Principal Analyst, Adobe Digital insights.
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