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Robinhood’s IPO presents’alarming’ risks for investors as regulators weigh a crackdown on the company’s main source of revenue, says a veteran stock analyst

Robinhood app SOPA Images/Getty Images Robinhood's upcoming IPO is overvalued and packed with regulatory risk, according to veteran stock analyst David Trainer. Trainer's investment research firm said Robinhood's main source of revenue-payment for order flow-could be banned by regulators. A ban would severely harm Robinhood's business model, Trainer said. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Robinhood's upcoming initial public offering presents "alarming" risks to investors as regulators could stifle the brokerage app's main source of revenue, according to David Trainer, CEO of investment research firm New Constructs. 81% of Robinhood's revenue in the first quarter of 2021 came from a controversial practice known as payment for order flow. Th...