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The 1st days volume was huge. I suspect that Robinhood's choice to let its own customers buy shares might have been the problem. I bet many of them were quick t
by WheelsAtLarge 5y ago
The 1st days volume was huge. I suspect that Robinhood's choice to let its own customers buy shares might have been the problem. I bet many of them were quick to sell once the IPO did not meet their desire for it to explode upwards and that always leads to a down day.
Too bad since the debut will become an example of what not to do for an IPO. It will Lock-out the small investors in the future since no company will want to be another example of a bad IPO debut.
- CheezeIt 5y agoNo, you are completely wrong. This is the ideal IPO. You want to get a high price, because that means more money goes into the company.
- agency 5y agoI mean, in a narrow financial sense that is true. Robinhood got a good deal selling their stock before it fell. But Robinhood is selling a story about democratizing access to markets and made a big deal about allocating a big chunk of their order book to their own customers / retail investors. The fact that it fell so much is not a good look, and that may matter more to them than getting the best deal on this capital when capital is plentiful and cheap. I don’t think this is a good outcome for them.