Robinhood whipsawed in itstrading debut on Thursday, with shares initially jumping 6% before falling as much as 12%.- The online trading app was valued at $32 billion when it priced its
IPO at $38 per share on Wednesday. - Robinhood raised $2.1 billion from its IPO and allocated a portion of shares to its user base.
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Online trading app $4 whipsawed in its post-IPO debut on Thursday, with shares climbing 6% before falling as much as 12%. Shares hit a high of $40.22 before falling to a low of $33.60.
The company priced its IPO late Wednesday night at $38 per share, representing the bottom end of its targeted range of $38 to $42 per share. The IPO raised $2.1 billion for the company and gave it a valuation of $32 billion.
Robinhood last $4, with shares trading on private secondary
The company has seen explosive growth amid the COVID-19 pandemic and government stimulus checks, with millions of Americans becoming first time investors in the
While the brokerage firm is not yet profitable, the company saw revenue grow 245% to nearly $1 billion in 2020. That revenue growth accelerated in the first quarter of 2021, surging 309% to $522 million, according to its $4
Much of that growth is coming from $4 and $4 two highly speculative areas of markets than often lead to either big losses or massive fortunes.
Unique to Robinhood's IPO is the company's $4 to allocate up to 35% of its IPO shares to users of its app. Retail investors are often restricted from investing in IPOs at the pricing afforded to institutional investors.
While Robinhood's IPO represents a big milestone for the company, there is still a long way to go before co-founders Vlad Tenev and Baiju Bhatt can cash in on their hefty compensation awards. Both founders will be awarded $1.4 billion if $4
Robinhood trades on the Nasdaq under the symbol "HOOD."
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