Show an ad over header. AMP

I am the FIRST

Robinhood IPO brings meme stock icon into the Wall Street fold

Today is the day everyone can begin buying and selling shares in Robinhood, which goes public on the New York Stock Exchange after raising $1.89 billion in its IPO.

Why it matters: Robinhood is considered a proxy for the rise of retail investing, particularly among younger Americans. But it also has drawn regulatory and political scrutiny for a variety of business practices, and found itself in the crosshairs after users drove up the price of GameStop stock earlier this year.

The bull case: Robinhood has become synonymous with mobile, no-fee trading of stocks, options, and cyptocurrencies. Its business is booming.

  • Revenue soared more than 300% between the first quarter of 2020 and 2021, hitting $522 million. Annual revenue in 2020 was $959 million, up from just $277 million in 2019.
  • Robinhood isn't just taking market share from traditional brokers, many of whom have aped its no-fee model, but it also is growing the market itself. The company claims that over 50% of its users are first-time investors, and that its median customer age is just 31 years-old.
  • It's also is benefitting from increased interest in cryptocurrencies, with Robinhood's crypto under custody growing from $414 million at the end of 2019 to $3.53 billion at the end of 2020.

The bear case: The risk factor section of Robinhood's IPO filing is a whopping 75 pages long.

  • Some of it is pretty standard for a fintech where asset and data security are paramount.
  • But lots of it is very specific to Robinhood, which is the subject of class action lawsuits tied to this past winter's meme stock trading frenzy and regulatory lawsuits over alleged securities law violations.
  • Regulators also are probing employee stock trades and the fact that Robinhood's co-founders aren't registered with FINRA, Wall Street's self-regulator.
  • Robinhood's primary revenue source is from something called payment for order flow, and there's been some political and regulatory movement toward limiting or even abolishing the practice.
  • Then there's the volatile world of crypto, with much of Robinhood's increase tied to the particularly speculative Dogecoin.

IPO details: The company sold 52.37 million shares at $38 each, at the lower end of its proposed price range of $38-$42. It will begin trading later on Thursday under the ticker symbol "HOOD."

  • Robinhood said it would set aside up to 35% of shares for its customers, although we don't yet know the ultimate percentage.

The bottom line: 2021 has been the year of the retail investor. By this time tomorrow, we'll know more about how the market is reacting to that reality.

regular 4 post ff

infinite scroll 4 pff

test 5

shall had shall had shall hAd HAD.

content more

selected test 10 in From Site, test

111added test 9

added external seo phrase

added news internal link to seo phrase

Humans are capable of great kindness and compassion, and there are countless examples of individuals who have made a positive impact on the world through their selflessness and generosity.

One such example is Mother Teresa, who devoted her life to serving the poor and sick in the slums of Calcutta. Through her tireless work and unwavering dedication, she touched the lives of countless people and became a symbol of compassion and selflessness.

Another example is Malala Yousafzai, a young woman from Pakistan who has become a powerful advocate for education and the rights of girls. Despite facing threats and violence, she has continued to speak out and fight for change, inspiring others to do the same.

These are just a few examples of the many good humans who have made a difference in the world. They remind us that one person can make a difference and inspire others to do the same.

It's also important to note that acts of kindness and compassion don't have to be on a grand scale to make a difference. Small acts of kindness, like holding the door open for someone or offering a word of encouragement, can have a big impact on the people around us.

In conclusion, humans are capable of great compassion and kindness, and there are many individuals who have made a positive impact on the world through their selflessness and generosity. They remind us of the power of one person to make a difference and inspire others to do the same. Let's all strive to be good humans, and make our world a better place.



Get Goodhumans in your inbox

Most Read

More Stories