Of all the companies choosing to come public this year, none seem to be as popular and sought after than that of Robinhood. The e-trading platform has seen its fair share of ups and downs this year — some of them very jarring — and it seems like investors really enjoy the idea of having some HOOD stock in their portfolio.
Robinhood is one of the more controversial players in e-trading right now, thanks in large part to its multiple flubs through this year and the last. In fact, the company only just recently settled with the Securities and Exchange Commission (SEC) regarding its trading blockages from last year, and forked up $70 million. All the while, the company has seen multiple crucial errors, with investors being prevented from purchasing Dogecoin (CCC:DOGE-USD) and meme stock securities like GameStop (NYSE:GME) around the time of their price skyrockets.
Regardless of these pratfalls, investors still tout the platform as being one of the most important web trading services. The company are the innovators of fee-free trading online, and they offer one of the most user-friendly trading experiences. So, with all this in mind, what can we expect of the Robinhood IPO? Here’s what we know so far.
When Will HOOD Stock Hit Wall Street?
- Robinhood filed its S-1 with the SEC on July 1. This is the document by which the company can initiate a public offering.
- The company will be listing on the Nasdaq Exchange if the S-1 filing sees approval. The stock will trade under the ticker ‘HOOD.’
- We don’t yet know the date for the HOOD stock IPO. The S-1 suggests the sale date will occur “as soon as practicable after this Registration Statement is declared effective.”
- The company says it currently has about 18 million active users and holds over $80 billion in assets under custody.
- Additionally, the company boasts a payment-for-order-flow revenue of $682 million in 2020 — a 514% increase year-over-year. Keep in mind that payment-for-order-flow accounts for only about half of the company’s revenue.
- Robinhood is seeking a market valuation of $35 billion with the HOOD stock offering. The company’s last fundraising round in September of 2020 saw the company reach a value of $11.7 billion.
- According to CNBC, the company will attempt to sell stock at a range of $38 to $42 per share.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.