Sunday, July 25

Robinhood IPO analysis

Markets, MI Exclusive, payment for order flow, retail investing, Retail Trading, retail trading activity, Robinhood, Robinhood app, Robinhood IPO, Robinhood IPO analysis, Vlad Tenev

‘We can expect fireworks’: 6 experts sound off on their expectations for Robinhood’s hugely anticipated IPO

Vlad Tenev, CEO and co-founder of Robinhood. Kimberly White/Getty Images for Robinhood Ever since Robinhood was founded in 2013, the firm has been at the center of the retail trading boom. Ahead of its IPO, Robinhood announced it is selling up to a third of its shares directly to retail investors. Insider asked six experts what to expect ahead of the popular trading app's stock market debut. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Robinhood's mission since it was founded in 2013 has been to "democratize finance for all."Years later, ahead of its hotly-anticipated initial public offering, founder Vlad Tenev is trying to make good on that promise by offering a third of the company's shares directly to customers through its app, a far greater amou...
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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...