Robinhood has its first Super Bowl ad, just as the company is facing a growing brand crisis. CNBC reports that the commercial marks Robinhood’s largest brand campaign and focuses on the idea that anyone can be an investor. That’s been central to Robinhood’s message since it was founded seven years ago, but recent stock restrictions have undermined the entire Robinhood brand.
Robinhood last week temporarily banned small investors from buying shares in companies like GameStop before imposing restrictions on stocks related to r / WallStreetBets – including GameStop, AMC and Nokia. The move angered thousands of Robinhood customers trying to buy stock, and the company’s app received reviews on the Google Play Store. While Google initially tried to save the app’s rating, it dropped to just one star yesterday.
Robinhood is also facing dozens of lawsuits over GameStop’s stock shutdown, and Rep. Alexandria Ocasio-Cortez (D-NY) also called on Congress to investigate the Robinhood app. Robinhood claims the restrictions were put in place because clearinghouses suddenly required much higher deposits, but the company has not specifically explained the cryptocurrency restrictions it has also put in place.
This new Super Bowl commercial doesn’t address the Robinhood controversy right now, making it rather awkwardly timed. CNBC reports that Christina Smedley, Robinhood’s chief marketing officer, says the ad is designed to let people know more about the app. “It felt like this was a great phase for us to remind people of what we stand for and remind people why the company was founded in the first place,” says Smedley.
Robinhood has disabled comments on the YouTube version of the commercial, but one version on Twitter is already getting negative reactions to this new Super Bowl ad.