Latest News

Robinhood Begins Trading At Bottom Of Range

The digital stock market and cryptocurrency trading platform behind the recent meme rally — Robinhood Markets — opens trading on Nasdaq on Thursday (July 29) under the ticker HOOD, Reuters and other news outlets reported.

With an estimated $31.8 billion valuation, Robinhood sold 55 million shares at the low end of its $38 to $42 price range. Regardless, the debut is among the most valued firms from the U.S. to list on the markets year-to-date, per Reuters.

Robinhood set aside between 20 percent and 35 percent of its shares for its users, a move that is largely an anomaly, according to the article. Robinhood had 21.3 million monthly active users by the end of last month, compared to 11.7 million at the end of December.

The startup’s F-1 filing with the Security and Exchanges Commission (SEC) showed 245 percent revenue growth in 2020 over 2019. Last year, net income was posted at $7 million, from a net loss of $107 million in 2019. 

The Silicon Valley-headquartered Robinhood has been wading in a sea of regulatory hot water after controversy surrounding a meme stock trading frenzy that escalated the values of Gamestop and AMC. But that’s just the start of it. On Wednesday (July 28) Robinhood co-founder and CEO Vlad Tenev found himself at the center of a probe for not being licensed with Wall Street regulator the Financial Industry Regulatory Authority (FINRA). 

 

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News