Robinhood 'not out of the woods'
Robinhood stock slightly rebounds from a steep drop of 12,2 percent on the first day of trading. The day before, the brokerage app Robinhood entered the stock market with a rather tumultuous public offering: it opened at their IPO price of $38 but moments later began to crash.
12:20pm: Robinhood opens— Jerome Powell (@alifarhat79) July 29, 2021
12:21pm: Robinhood crashes $HOOD
The drop in stock price didn’t come as a surprise as investors became sceptical after DiDi Global’s $50 billion IPO crash. There was a lot of negative retail sentiment among FinTwit and Wallstreetbets communities after the January Reddit fallout.
Trading under the ticker symbol HOOD, Robinhood helped enable the "meme stock" frenzy, but later this fresh FINRA-regulated broker-dealer came under fire for suspending GameStop trading, the mother of all the meme stocks. Robinhood’s brand was severely damaged as 56% of account holders were considering leaving the app
I have been bashing Robin Hood for a long time. I believe it was great that they forced the big guys to lower commissions to zero.— Matt McCall (@MatthewMcCall) January 28, 2021
BUT, they have been scalping small investors for too long AND now this!
The value of a potential IPO is plummeting!
Robinhood IPO, valued at $32 billion, has been the most anticipated listing of the year. The financial app marked a lukewarm welcome as shares closed down 8.4% on its first trading day. Today the price of the commissions-free stock investing app is trying to bounce back on reports of Cathie Wood’s backing. But will the stock hold the gains despite all the negative sentiment on social media platforms?
The online trading company, which boasts 22.5 million mostly young users, is facing allegations concerning its registration with the Financial Industry Regulatory Authority (FINRA).
So you’re telling me that the CEO of #Robinhood Vlad Tenev isn’t even registered with FINRA?? 🧐 RH paid millions in fines to settle with them last month. New investigation. Another reason why I’ve been saying to transfer assets to Fidelity. $AMC #AMC https://t.co/gEHYt1K9Uw pic.twitter.com/eksn9iN37V— Wolf of My Street🏡 (@Ryan__Rigg) July 28, 2021
Bumpy Robinhood IPO became immediately a trending topic on FinTwit.
The Robinhood platform allowing for anyone to trade shares of public providers fee-absolutely free, was literally free falling on its first day of public trading.
Robinhood quickly became one of the worst of its kind debut among IPOs of this size, the weakest opening trade since Uber, loss-making ride-hailing app fell over 7% back in May 2019.
The Reddit crowd rejoiced as Robinhood stock kept falling and falling.
Robinhood & MF Global
Some amongst the Old School investors noted a resemblance between the MF Global and Robinhood IPOs.
If Robinhood goes full MF Global, who is left to buy Tezzler stonk?— TC (transcript reader) (@TESLAcharts) January 28, 2021
Those who do not remember the past are condemned to repeat it.
Buyz not n the HOOD:Robinhood has dethroned MF Global as the worst large IPO of all time: BBG— zerohedge (@zerohedge) July 29, 2021