Robinhood Shares Didn't Perform Very Well on Their First Day
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Robinhood Shares Didn't Perform Very Well on Their First Day

5 months ago

They closed Thursday's session at $34.82 — more than 8% lower than the reference price of $38.

Robinhood Shares Didn't Perform Very Well on Their First Day

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Shares in Robinhood had a rather nasty debut on the stock market.

They initially listed on the Nasdaq at a price of $38 apiece, but dropped by 9% in the space of 15 minutes.

HOOD ended up closing the session at $34.82 — down 8.37%.

Although Robinhood’s trading app is popular among millennials, the rather disappointing performance suggests that there was little demand for the stock among investors.

Even the $38 price tag was at the lower end of the $38 to $42 range that had been set before 55 million shares were sold, raising $2.1 billion.

Not All Doom and Gloom 

Overall, Robinhood was one of the most actively traded stocks during Thursday’s session — and proved more popular than the likes of Apple and Tesla in terms of volumes.

Some analysts have argued that the tepid debut wasn’t much of a surprise, pointing to how Facebook also suffered a disappointing performance when the social network performed its IPO back in 2012.

It’s possible that Robinhood may still be suffering a blowback from the GameStop saga earlier this year, where the company controversially imposed restrictions on meme stocks that were subject to a short squeeze.