Robinhood Jumps in Debut on Nasdaq, Then Loses Steam
Investing.com
Published Jul 29, 2021 10:31AM ET
Updated Jul 29, 2021 12:27PM ET
Investing.com -- The online brokerage Robinhood Markets Inc (NASDAQ:HOOD) began trading on Thursday in one of the most anticipated stock debuts of the year.
The company priced its initial public offering Wednesday night at $38 a share, giving the company a valuation of $35 billion. It opened at $38 and climbed more than 2% in initial trading but minutes later turned negative and was down nearly 6%.
The broker has been a favorite of retail traders in the so-called meme-stock trade this year but has also courted controversy over its business model. Most of Robinhood's revenue at the moment comes from selling customer trade orders to Wall Street firms for execution, or payment for order flow. That allows Robinhood to offer trading to customers for free but critics have raised questions about whether customers are getting the best price for their trades.
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Written By: Investing.com
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