Tallyho! Robinhood IPO Makes Perfect Timing As Gamestop Dust Sets In
Once upon a time, retail investors were subject to the slings and arrows – and price hikes – of their brokerage firm princes. The feudal landscape of retail investment was dominated by transaction fees, consulting fees, management fees… charges-fi-fo-fum!
(And if you’re wondering about the goldfish reference above … Here is.)
But, in 2015, a savior (sort of) arrived!
A legendary outlaw ripped straight from the pages of English literature crawling from the undergrowth of Menlo Park, California. Robinhood offered free trade across the country, and everything was fine… until it wasn’t.
As Batman’s Harvey Dent said, “Either you die a hero or you live long enough to see yourself become the villain.” And has Robinhood become a villain … or at least, that’s how the story unfolds on Reddit and social media.
I’m not going to rehash the Robinhood / GameStop (NYSE: GME) debacle. Suffice it to say, Robinhood has blocked users from buying GME and several other memes stocks, allowing retail-only traders the ability to sell those stocks.
It was hardly malicious, despite Reddit’s conspiracy theories, but it was deeply silly and proof that Robinhood was not sufficiently capitalized to handle demand. In the end, it was Robinhood’s problem.
So why dwell on the past on Robinhood?
Because after spending the last year lounging in the limelight, Robinhood has just filed a confidential file to be made public. Once Robin of the Hood, always Robin of the Hood, I guess.
But is it really secret or confidential when you post about it on your official blog?
I mean, Robinhood’s IPO was widely anticipated. We all knew it was going to happen. I guess Robinhood was just waiting for the worst of the GameStop drama to end. Either way, 2021 is a great year for Robinhood to go public. Listen to me on this one …
Amid the GME trading frenzy, Robinhood added over three million users, according to JMP Securities. Plus, cryptocurrencies have never been so popular … and Robinhood is one of the few brokerages that allow crypto trading for retail investors.
(Speaking of crypto, have you seen Ian King’s next wave of Crypto Fortunes? I know. Shameless plug, so go after me. Anyway…)
What Does Crypto Trading Have To Do With Robinhood? Well, Little Jon, the Coinbase crypto market will be released to the public soon as well. And, in a recent round of private market trading, Coinbase was valued at $ 100 billion.
Granted, Robinhood isn’t as robust on the crypto side as Coinbase, but it offers a lot more to retail traders than just crypto. As for the valuation of Robinhood … its last fundraising in 2020 valued the company at $ 12 billion. I have to think that the value will simply increase based on recent Coinbase activity.
For now, investors interested in the Robinhood IPO will have to wait for more information. We’re still in the early stages here. But that doesn’t mean we can’t speculate, does it? Right!
On that note, we Sherwood love to hear your thoughts! Robinhood is really Prince Jon in disguise? Is Robinhood the king of outlaw investing? And are you going to buy the Robinhood IPO?
Email me and let me know: [email protected]! Of course, if you’re looking for a more direct way to access the crypto boom, say no more!
It is estimated that $ 24 billion could be released into the crypto market. It’s a move that could cause some cryptocurrencies to skyrocket, especially bitcoin.
And our resident crypto expert, Ian King, is going to show you how you can play this next wave of crypto to potentially multiply your money 12 times over the next 12 months. Discover Next Wave Crypto Fortunes Now! (Click here.)
Attention, Asian chipmakers … Intel (Nasdaq: INTC) is back in force! The company has just announced that it is giving up $ 20 billion on two new chip factories in Arizona.
Considering the global chip shortage and the decline of US dominance in the semiconductor industry, Intel’s decision in the US is quite refreshing. That said, CEO Pat Gelsinger also noted a shortage of industry-wide chip components, such as substrates. Did someone say “invest in the sand”? Yeah… we did.
Just when you thought AT&T (NYSE: T) has stopped thinking like an old world media company… it’s going and killing one of HBO Max’s biggest circulation. The so-called “day and date” releases – that is to say, simultaneous theatrical and streaming releases – are dead.
And we can thank Warner Media’s agreement with Cineworld (OTC: CNNNW) for this step back. Warner just signed a film deal with Cineworld that creates a 45-day film exclusivity window. Disney (NYSE: Dis) is already eating your lunch, AT&T…
JM Smucker (NYSE: SJM) has just signed a partnership with the king of coffee JDE Peets (OTC: JDEPF), and luckily it’s not for Goober-grape-java. Sure, Jelly is Smucker’s bread and peanut butter business, but the company also covers ground coffee spread, owning brands like Folgers, Café Bustelo and Pilon.
It’s still unclear how the duo plan to “aggressively pursue opportunities for innovation in liquid coffee,” and the vagueness of the deal puts old Smuckeroo in a sticky situation today, with SJM giving up nearly all of the gains from the week. However, consumer staples like Smucker generally do well during an economic downturn and uncertainty – so if you need another valuable name for your list, Smucker could be your jam.
While GME’s double failure in the winnings box came as no surprise to anyone here on the ‘Thing crew… Wall Street was sort of elated. GameStop management’s “excellent execution” forced Wedbush analyst Michael Pachter to lower his price target from $ 16 to $ 29… while demoting GME to sell.
Why? Because the GME price has “disconnected” from its fundamentals. What gave you this idea, Wedbush? Captain Obvious called – he decided to make you an honorary lieutenant in Obvious’s army…
Last week, we asked for your opinion on disconnecting our Plug Power (Nasdaq: PLUG) play after the company announced it would be reformulating its past finances. In other words, we wanted to know if Plug’s accounting apology made you consider the exit… or if you were staying plugged into the business.
By the way, you don’t hurt me here in these polls – stocks in Great stuff The choices are simply recommendations, and most importantly, you have to do what’s right with it your money. Capisque?
Disclaimer aside (SEC won’t let me, you see) they tried to shut us down on PLUG… but 73% kept hanging on like Vanilla Fudge. Diamond hands! Rocket emojis! Another 13% of you kept half and sold half, while the remaining 14% are missing for the count.
Thank you for playing, for voting … for interacting with your peers The big ones!
Now for today’s poll that is likely to spark more division … let’s talk about this Robinhood IPO. Since the brokerage’s public foray is no longer a hypothetical scenario, would you buy Robinhood’s public market debut?
Of course I know some of you The big ones out there loudly (and proudly) expressed your disdain for the purchase any IPO – end of story – but that’s not the point for today. With everything you saw during the Robinhood era in media limbo …
Are you going to buy the Robinhood IPO? Click below and let me know!
Of course, if you have any further thoughts on the ethical no man’s land Robinhood got lost in, drop me a line! I want to hear all. Crazy or raving about Robinhood at your leisure.
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Until next time stay Awesome!
Editor, Great stuff