A Year After GameStop Fiasco, Robinhood Grapples With Fresh Woes

A little over a year ago, things seemed to be going in the right direction for Robinhood Markets Inc.

The online brokerage with a Silicon Valley pedigree had just wrapped up a period of meteoric growth, surpassing 12.5 million users, and was charging toward an initial public offering that would make its then-billionaire founders many times richer.

Then, on Jan. 28, 2021, everything changed. Hordes of retail investors, many of whom got their introduction to trading on Robinhood’s app, ushered in the meme-stock era by plowing into struggling stocks such as GameStop Corp. and AMC Entertainment Holdings Inc., and ...