Robinhood IPO? What Experts Are Saying Now Following the Reddit Fallout

A potential Robinhood initial public offering (IPO) could be at risk following its ban of popular stocks targeted by Reddit traders this week.

Robinhood's mobile app logo is displayed on a smartphone screen. Robinhood stocks

Source: OpturaDesign / Shutterstock.com

While there’s no official news concerning a Robinhood IPO, rumors have been floating around. The current batch claim that the company is aiming to go public this year and that it has entered into talks with Goldman Sachs (NYSE:GS) for the IPO.

The problem now is its banning of stocks such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC). These were both stocks that retail investors on Reddit WallStreetBets were boosting up, which was, in turn, hurting hedge funds.

Axios writer Dan Primack sums up the issue well with this statement.

“Robinhood not only has a big user trust problem, it also may have a political problem. And that translates into an IPO problem, as the company is said to be on the verge of filing confidential paperwork.”

This Tweet also shows the trust issues Robinhood is now dealing with.

Here’s what other experts have to say about how the Reddit fallout could affect a Robinhood IPO.

Investors wanting to dive deeper into the Reddit and Robinhood drama can check out the following articles.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2021/01/robinhood-ipo-what-experts-are-saying-now-following-the-reddit-fallout/.

©2021 InvestorPlace Media, LLC