Thursday, July 29

Robinhood IPO

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Robinhood prices IPO at $38 per share, valuing the online brokerage app at $32 billion

SOPA Images/Getty Images Robinhood priced its IPO at $38 per share on Wednesday, valuing the company at about $32 billion.The online brokerage app revealed surging growth in its S-1 filing amid the COVID-19 pandemic and government stimulus checks.Robinhood is set to trade on the Nasdaq under the symbol "HOOD" on Thursday.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.Robinhood priced its IPO at $38 on Wednesday, valuing the online brokerage app popular with retail investors at roughly $32 billion. The Wall Street Journal first reported the pricing.Robinhood's IPO pricing came it at the bottom end of the price range it had initially been targeting during its roadshow of $38 to $42 per share. Robinhood last raised $3.4 billion earlier this year, with share...
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‘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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The average Brit plans to invest almost 20% more each month after the pandemic, extending the retail trading boom, survey finds

In addition to executing orders, brokers also provide a range of educational resources and investing advice. JGalione/Getty The average Brit plans to spend 19% more each month on investing post-pandemic, a Barclays Smart Investor survey says. Half of those surveyed said they will cut back on other spending to fuel their lockdown investing habits. On Monday, trading app Robinhood said it had recorded lower trading levels between March and June. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The average UK investor plans to increase their investments by 19% each month as COVID-19 restrictions in the country come to an end, extending the retail trading boom that originated during the pandemic, a Barclays Smart Investor survey found. Younger people are set to...
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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...
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Robinhood co-founders each stand to gain $1.4 billion in equity awards if stock price hits $101.50 by 2025

Robinhood co-founders and co-chief executives Baiju Bhatt and Vladimir Tenev Thomson Reuters Robinhood co-founders Vlad Tenev and Baiju Bhatt stand to receive $1.4 billion in equity awards if it hits a big milestone.Both co-founders will receive 13.8 million shares of Robinhood if the stock price hits $101.50 by 2025, according to the company's S-1 filing.The popular trading app is expected to go public later this year and is seeking a $40 billion valuation.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.Robinhood co-founders Vlad Tenev and Baiju Bhatt stand to receive up to $1.4 billion worth of Robinhood stock if they hit certain stock performance targets once it goes public, according to its S-1 filing made with the SEC last month.Both co-founders will...
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Days after Charlie Munger called Robinhood’a gambling parlor,’ the free-trading app revealed options trading as its largest source of revenue

Warren Buffett, CEO of Berkshire Hathaway, and vice chairman Charlie Munger. JOHANNES EISELE/AFP via Getty Images Just two days after Charlie Munger of Berkshire Hathaway called Robinhood "a gambling parlor," the free-trading app said it derives a majority of its revenue from options trading.The comments from Warren Buffett's right-hand man came in an interview with CNBC on Tuesday night, in which the billionaire investor said, "it's telling people they aren't paying commissions when the commissions are simply disguised in the trading."On Thursday, Robinhood filed its S-1 with the SEC, a necessary step the company has to take prior to going public. The document revealed the underlying drivers of Robinhood's business, from options, equities, and crypto trading, to securities lendi...
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Robinhood says users have made $25 billion through trades on its platform-but one influential retail investor warns its easy-to-use interface could spark panic-selling if stocks take a tumble

REUTERS/Dado Ruvic/Illustration Robinhood's IPO paperwork reveals that its customers have made approximately $25 billion. But one influential retail investor warns its interface that makes it so easy to invest could also make it easy to panic sell. Robinhood's way of turning red when stocks go down could trigger panic-selling, she said. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Robinhood's mission to "democratize finance for all" through a simple mobile trading platform with zero fees has helped usher in a new generation of investors-and helped them make money along the way. But one influential retail investor is warning its easy-to-use interface could spark panic-selling if the market sees a drawdown.According to the brokerage app's latest IPO p...
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Robinhood’s timeline to go public slowed by the SEC’s close scrutiny of its cryptocurrency business, report says

Rafael Henrique/SOPA Images/LightRocket via Getty Images, Brendan McDermid/Reuters Robinhood's IPO plans have hit a snag as the SEC reviews its prospectus, Bloomberg reported. The regulator has been looking into Robinhood's growing cryptocurrency business, the report said. The investing app provider's listing, initially planned for June, could be delayed to the fall. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Scrutiny from the Securities and Exchange Commission has been standing in the way of Robinhood's plans to go public, Bloomberg reported on Thursday. The US securities-markets regulator has been looking closely at the investing app provider's expanding cryptocurrency business, and there has been extensive discussion between the two about Robinho...