Robinhood Markets Inc. (HOOD) is probably going for a very hot IPO on Wall Street and is expected to be about a $40B valuation. I wrote this piece last week and forgot to post it.
I was asking the question: will it rise or fall after the IPO?
Not quite the happy ending.
It IPO on Wed and was valued at $30.8B instead, near the bottom of its expected valuation.
Seems like people are not as confident with Robinhood as everyone thought they should.
Perhaps they are worried that regulations might hinder its growth or that its founders, already controversial, might do more controversial stuff.
Robinhood was founded in 2015, just a mere 6 years ago and it is already worth a whopping $11B.
What I love about it was that it was zero commission and offered common folks the ability to buy fractional shares.
Something which was not common at all prior to their bold but controversial moves.
Robinhood stirred the hornet’s nest. It was bold and daring. It made wall street rethink things.
People were astonished and even angry.
But it worked.
They now have nearly 18m monthly active users and nearly $81B in assets.
They dominate the first-time investor crowd and gave “power” to the people, democratizing what used to be sophisticated investing to the common men.
If that isn’t what we know of the mythical Robinhood character, who stole from the rich and gave to the poor, I don’t what is.
Challenging the status quo is tough, but with the right intention and good execution, it can be done.
When Robinhood first came out in the US, I was so annoyed that it wasn’t available to Asia (it still isn’t).
Hopefully, Moomoo can fill that niche and do better.
Whatever it is, I do love the ticker symbol “HOOD”!
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