Robinhood crashes 27%
Robinhood crashes by over 27% on reports early investors file to sell 98 million shares
The newly public online brokerage filed to sell 98 million class A shares. The popular app-based broker negatively surprised the supporters.
Robinhood shares this week pic.twitter.com/td2ou2I5a7— FinTwit (@fintwitnow) August 5, 2021
The stock keeps on seesawing since its IPO debut.
In a regulatory filing, submitted today, Robinhood registered for the sale of up to 97.9 million of shares by early shareholders.
Robinhood's entire purpose in life is to sell client option trade data to Citadel. RH PFOF from stocks was down 25% Y/Y in Q2 but up 48% for options pic.twitter.com/BIqkN1LLI8— zerohedge (@zerohedge) August 3, 2021
Robinhood noted that the company will not receive any of the proceeds.
Robinhood, the facilitator of meme stocks, has now become a meme stock. It's the circle of life.— Genevieve Roch-Decter, CFA (@GRDecter) August 5, 2021
Robinhood becomes the original meme stock,
How is #Robinhood a disruptor? It was able to temporarily build a huge platform by giving away brokerage services for free at a time when the #Fed was giving out money for free. But the "free" services will eventually exact a high price that duped "customers" will ultimately pay.— Peter Schiff (@PeterSchiff) August 5, 2021
...with a lot of downside potential from here.