Robinhood (NASDAQ:HOOD), now nearly two weeks since its public offering, remains one of the most controversial stocks you can buy among retail investors. The company made enemies of GameStop (NYSE:GME) and AMC (NYSE:AMC) investors earlier in the year when its platform limited trading of meme stocks. But today marks the company’s first acquisition since its initial public offering (IPO). And with this acquisition, AMC stock holders must take notice of the e-trading play.
Meme-stock investors and Robinhood have a contentious relationship. Robinhood, being the most user-friendly e-trading platform, is the base of operations for many new retail investors. However, the company came under fire from the community after barring trading of many meme stocks for multiple days at the height of the GameStop short squeeze mania.
AMC Stock Holders Affected by Robinhood’s Say Acquisition
Regardless of these sour feelings, AMC stock investors must come to terms with the company’s news today. Robinhood is announcing its acquisition of Say Technologies. Say is a tech outfit that creates tools for shareholder voting and communication. Robinhood will absorb Say through a $140 million, cash-only transaction.
This might feel irrelevant to AMC shareholders, until you recall the Q&A tool ahead of the company’s most recent earnings call. AMC encouraged shareholders to ask questions for the company to answer in a Q&A format, a first for the company. The platform users are meant to ask their questions through? It is Say Technologies’ shareholder communication tool.
The company is lauding the success of this format, and execs plan on utilizing the tool in future earnings meetings. However, in the future, it will be a Robinhood-branded Q&A tool, thanks to this acquisition. The e-trading company will have a close hand in shareholder communication, both among shareholders and with AMC executives themselves.
On news of the acquisition, HOOD stock is trading down, to the tune of about 4%. AMC stock is also trading down, by around 2.5%.
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.