The popular investment app, and now publicly traded company, Robinhood sure knows how to stir up publicity… In its short lifespan, it has been the headlining story for countless articles across the financial sector.
Though not all of these stories covering the company have been positive, Robinhood officials appear to be taking the old adage to heart that “there’s no such thing as bad publicity!”
Today, we’re looking at the wild ride this stock has been on over the past week and discussing what we could see in the company’s future as early investors look to abandon the stock.
Robinhood’s Wild Ride
Despite high hopes (especially within the company itself) the Robinhood IPO didn’t cause the big splash initial investors were hoping for. And while founders Vladimir Tenev and Baiju Bhatt in making Wall Street history when their company went public, it was not for the reasons they had hoped…
At the end of last week, all anyone could talk about was how disappointing the Robinhood IPO had been. Yet, despite a rocky start, many tried and true fans of the app continued to support it and, to their benefit, in the following days, the stock managed to work its way upwards.
With the opening bid of $38 falling to around $34 in the first few hours alone, no one was quite sure what was coming next for this ticker at the close of last week’s markets. In just three trading days, however, this pick managed to work its way to their lifetime high (for now) of $70.39.
Robinhood Rebounds
As this week comes to a close, charts have taken a bit of a tumble, but, as of the time of this send, they look to be rebounding. How long this rebound will be able to hold out is another question entirely.
Many look to the recent news update stockholders in the company are expected to sell 97.9 million Robinhood shares in the coming days. The selling shareholders include a number of venture capital firms that invested in Robinhood early on including New Enterprise Associates which owns more than 10% of the company’s shares.
According to officials, this offering is through an automatic conversion of certain convertible notes held by the selling stockholders in connection with last week’s initial public offering.
It was after the release of this news Thursday that the stock dropped its most recent 27% to $50.97. At Friday’s close, however, the stock had climbed its way back to $54.79 which, though not quite as close to its most recent high of $70.39 as investors would like, is certainly higher returns than this pick was seeing at the end of last week ($35.15.)
With this glimmer of hope on the horizon, it can be fully expected that, even if some of the early investors abandon ship, so to speak, there will be a small but determined group of individuals who are committed and will more than likely go down with the ship, should that time come.
And with Robinhood’s uncanny ability to stay afloat even during the roughest of storms, it shouldn’t come as a surprise to anyone if this company has many years of sailing left in her future, yet.
Learn More Here…
As the Robinhood saga continues, we here at DTI want you to know that our family of skilled traders and investors will be here for you to help you through whatever market ups and downs might come our way. Not just with Robinhood, but within the market in its entirety.
With that in mind, we invite you to sit down and join our end of the week Ask the Pros roundtable below where host Celeste Lindman reflects on this week’s markets with expert investors Tom Busby, Tony Saliba, Geof Smith and Jeffry Turnmire!
P.S. – If you haven’t had a chance to check out the market secrets within the pages of Tom Busby’s Little Black Book, do yourself — and your investments — a favor and START READING NOW!