Robinhood Markets, the zero-fee stock buying and selling platform, has shuffled out and in of public favor within the final yr; first as a weapon of revolution for a military of retail buyers waging warfare on Wall Avenue, after which as a banner of doomed causes that marched the military straight into their graves.
Regardless of its speckled historical past, it guarantees to be one of many greatest and most-hyped market debuts of the yr, set to kick off buying and selling in a matter of hours. Right here’s what to know:
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Robinhood will debut on the Nasdaq underneath the ticker HOOD. Shares are priced at $38, the underside finish of its $38-$42 vary, Monetary Instances reports, and the corporate is aiming for a valuation of about $32 billion. It’s going public by means of a standard IPO route, versus the direct listings and SPAC offers which were in vogue these days.
In line with its acknowledged mission of democratizing the stock market by decreasing the obstacles to buying and selling, Robinhood is reserving 20% to 35% of its shares for its personal buyer base, which CEO Vlad Tenev has stated can be among the many largest retail investor allocations ever. Traditionally, IPO shares have been primarily reserved for Wall Avenue establishments and high-net-worth people, who can then purchase into the stock earlier than its debut, thus capitalizing on any ensuing IPO pop.
It’s a extremely uncommon transfer, however nonetheless in character for the corporate. Nonetheless, some are skeptical of the technique: “There’s little question that retail merchants are rather more fickle. The extra [Robinhood] sells to retail, the extra inclined they are going to be to some kind of Reddit tremendous squeeze sort of exercise,” Greg Martin, a director at funding dealer Rainmaker Securities, told CNBC not too long ago. In actual fact, Robinhood itself warned in its IPO registration that its stock worth may grow to be a rollercoaster trip.
What else are folks saying?
In accordance with a report from the Wall Avenue Journal, regardless of the unprecedented entry, many particular person buyers are nonetheless passing on Robinhood stock. Chatter on social media platforms like Reddit, Twitter, and Discord means that among the stock’s avoidance is perhaps motivated by revenge, for when the corporate blocked buyers from shopping for meme shares like GameStop and AMC amid a frenzied rally earlier this yr.
Others say they’ve developed an allergy to the stock after a number of high-profile controversies, together with scrutiny from the Monetary Business Regulatory Authority that led to a $70 million advantageous for alleged regulatory failings, the most costly penalty ever imposed by the group.
Nonetheless, one other crowd is optimistic, citing Robinhood’s potential to carve out area within the nascent cryptocurrency buying and selling universe.
TBD. Keep tuned!