Robinhood’s initial public offer (IPO) is off the blocks. The shares of the online brokerage platform Robinhood Markets trade under the ticker HOOD and are listed on Nasdaq 100. HOOD was trading at around $35.75 a few minutes after it got listed on the stock exchange.
After listing at $38, the share price tumbled and was down by over 10 per cent in quick time but later recovered from a low of about $33.
The pioneer of zero-commission stock buying, on the back of the trades involving GameStop (GME), AMC (AMC) and other so-called meme stocks, Robinhood IPO was expected to be a hit with the retail investors.
A third of its shares were set aside for its own customers to buy directly through the Robinhood app, which is breaking off from the traditional way in which shares are reserved for the institutional buyers.
In a highly competitive stock broking business, Robinhood has managed to make common retail investors access the stock market as a cost effective avenue for wealth creation. Robinhood is a brokerage firm providing access to individual investors to invest in stocks and ETFs with no account minimums and also buy and sell cryptocurrencies.
The company is regulated by FINRA, is a member of the Securities Investor Protection Corporation, and is registered with the U.S. Securities and Exchange Commission.
For the year ended December 31, 2020, as compared to the year ended December 31, 2019, Robinhood recorded total revenue growth of 245% to $959 million, up from $278 million. The company during the period recorded net income of $7 million, compared to a net loss of $107 million.
In addition, for the three months ended March 31, 2021, as compared to the three months ended March 31, 2020, the total revenue grew 309% to $522 million, up from $128 million; Recorded net loss of $1.4 billion, which included a $1.5 billion fair value adjustment to our convertible notes and warrant liability, compared to a net loss of $53 million; and Adjusted EBITDA was $115 million, compared to negative $47 million.
Recently, the online brokerage firm Robinhood had allowed users of its trading app to apply for IPOs. The access to IPOs will allow users to buy shares of companies at their offering price, with no account minimums required. If you are looking to buy shares of Robinhood or any other US stock, you can do so from India. You need to open an international trading account and start diversifying your portfolio across foreign stocks.