FINSUM + Magnifi: The Big IPO Flop (or Not)

August 10, 2021

The popular fintech retail trading platform Robinhood dropped 8% on the launch of its first day of its Initial Public Offering. Robinhood opened trading at the low end of its target range at $38 per share but quickly dropped to $34.82, bringing the market cap to $29 billion. The biggest shock was that Robinhood is one of few companies to show profitability in the year of its IPO, as it generated $7.45 million in net profit for 2021. What initially looked like a flop, now looks like a success story with $HOOD currently trading at $53.94 (up nearly 42% since the IPO). The skeptics might be worried about the future regulatory environment for the online trader as the SEC is reviewing payment order flow currently. However, Robinhood has grown quite rapidly and holds the third most brokerage accounts behind Fidelity and Charles Schwab.

(New York)

FINSUM + Magnifi: While not quite the IPO that one hopes for, their stock price has rebounded in the days since. The future of investment in fintech remains strong.

Other news today: How to Play the Post-COVID Spending Boom and Why Bond Investors Should Forget About the FedNew call-to-action

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