Robinhood Has the Worst Debut Ever for IPO of Its Size

finance.yahoo.com

34 points·donsupreme··4 comments

This isn't terribly surprising. We're talking about the brokerage that was counting proceeds from selling deep ITM calls and the stock being used to cover them in their margin calculations. Their track record speaks for itself.

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.

No, 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.

I 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.

Reply on news.ycombinator.com