Robinhood nears its biggest trade of all, an IPO, after wild year

[Bullitt]

Cathie Wood buys 3.6M shares worth $126M on first day of trading.

 

[Bullitt]

Welp, HOOD finished -8% from IPO price.

Has this one marked the top like Coinbase did for crypto?

 

[Bullitt]

Most hot IPO's finish the day above their IPO price. It doesn't look like $HOOD will be finishing above $38. What that means is, if you want to buy shares, you will be able to buy them lower than all the "lucky" ones who got shares ahead of today.

 

[Bullitt]

Same. It will be interesting to see what retail investors do with their shares.

A tale of two traders from WSJ. Interesting that the older guy is bearish :smile:

Bull

27-year-old Saleem Baltaji said he already requested 20 IPO shares through his Robinhood app. “I’m excited,” the Texas-based trader said. “I think it’s cool that they are giving us the opportunity” to receive IPO shares. Mr. Baltaji added that he is excited about Robinhood expanding its cryptocurrency business, where he believes the company has a lot of room to grow. “On a long-term basis, I think Robinhood is not going anywhere but up,” he said.

Bear

For traders such as 42-year-old Christian Millet, an operations manager at a construction company in Denver, the January trading halt is one of the reasons he intends to purchase bearish put options against Robinhood when options trading for the stock begins. A Robinhood trader himself for years, Mr. Millet has since switched to the brokerage app Webull. He said he plans to execute his trades against Robinhood there.

https://www.wsj.com/articles/robinh...l-trading-legion-it-helped-create-11627476245

 

[tsptalk]

Not me. But I don't have an RH account. If I did I may have got in.

 

[Bullitt]

Starts trading tomorrow afternoon. Anybody get in on the IPO?

 

[Bullitt]

I know most people don't read these, but the prospectus can give insight that is overlooked by even professional investors. Find a few market leaders, read their reports and you'll learn more than a years worth of regurgitated nonsense on twitter.

Robinhood, ticker: HOOD just released their prospectus for the IPO. Emphasis is theirs. Read it twice and really think about this. This entire platform depends on Dogecoin.

A substantial portion of the recent growth in our net revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin. If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected.

For the three months ended March 31, 2021, 17% of our total revenue was derived from transaction-based revenues earned from cryptocurrency transactions, compared to 4% for the three months year ended December 31, 2020. While we currently support a portfolio of seven cryptocurrencies for trading, for the three months ended March 31, 2021, 34% of our cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, as compared to 4% for the three months ended December 31, 2020.

https://sec.report/Document/0001628280-21-013318/

 

[Bullitt]

Getting closer to that date and good news for anyone who has a Robinhood account. You'll be able to take part directly in the pump and dump on the IPO day.

The popular stock-trading app plans to set aside as much as 35% of shares in its coming initial public offering for individual investors, according to people familiar with the matter, a much larger retail allocation than in a typical deal. Robinhood wants people to sign up to buy the shares on its new platform that gives users access to IPOs before they start trading.

https://www.wsj.com/articles/robinhood-wants-you-to-buy-robinhood-stock-on-robinhood-11625131801

 

[Benny7563]

Robinhood has a propensity to have website "Problems" every time there is something happening with any particular stock. Examples - shut down buying of GME, AMC, and about 15 other stocks in Jan during the runup. Website unavailable during most of the major Cryptocrashes, etc.

The company does not actually purchase the shares bought. This has been apparent by individuals transferring to other brokers. The settlement sheet shows share purchases after the transfer date with numerous fractional share purchases.

Like he said, "not without controversy".

 

[tsptalk]

COIN marked the crypto top. Will Robinhood have a similar impact on equities?

Good call. Could be the case.

Caution! Tooting my own horn ahead...

What affect will the Coinbase IPO this week have on crypto?

It could be initially positive, but I see it as a potential short term peaking moment, similar to what happened right after they OK'd and started trading bitcoin futures.

 

[Bullitt]

COIN marked the crypto top. Will Robinhood have a similar impact on equities?

 

[NewsFeeder]

Robinhood nears its biggest trade of all, an IPO, after wild year

Robinhood turned the brokerage industry on its head by offering zero-fee commissions and is expected to soon go public in a big deal, not without controversy.

More @ CNBC...