Robinhood’s initial public offering will officially debut on Thursday when the company begins trading on the Nasdaq under the ticker symbol HOOD…
ROBINHOOD TICKER: HOOD
According to the investment platform’s S-1 prospectus filing with the Securities and Exchange Commission, Robinhood will sell up to 55 million shares between $38 and $42 apiece. At $42 per share, the Menlo Park, California-based company could be valued as much as $35 billion.
Here’s a FOX Business roundup of what you need to know about the popular and controversial trading app ahead of its upcoming IPO.
Robinhood’s mission is to “democratize finance for all” by offering commission-free trading on individual companies, options and ETFs. In addition, the company also offers cash management accounts and cryptocurrency trading.
It is also considering offering retirement accounts, according to CEO Vlad Tenev.
To date, Robinhood has a total of 17.7 million monthly active users and manages more than $80 billion in assets. As for its finances, Robinhood reported total revenue of $522 million for the three–month period ending March 31, 2021, a 309% increase from $128 million a year ago. It also reported a net loss of $1.4 billion, including a $1.5 billion fair value adjustment to its convertible notes, compared to a previous loss of $53 million during the same period a year ago. In 2020, Robinhood’s revenue surged 245% year over year to $959 million, with net income of $7 million, up from a $107 million loss the year prior.
The company has said it plans to reserve up to 35% of its IPO for its customers.
Looking ahead at the second quarter, Robinhood estimates revenue between $546 million and $574 million and a net loss between $487 million and $537 million. It also forecasts a total of 21.3 million monthly active users.
Robinhood was founded in 2013 by Vladimir Tenev and Baiju Bhatt.
After graduating from Stanford University in 2008, the pair moved to New York and built two finance companies, selling trading software to hedge funds, according to Robinhood’s website.
Tenev and Bhatt later learned that Wall Street firms pay effectively nothing to trade stocks while charging everyday Americans a commission fee for each trade. With this knowledge, they moved to California two years later where they went on to create Robinhood in an effort to expand access to the financial markets.
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