Robinhood, the trading app geared toward young retail investors, has confidentially filed to go public, Bloomberg reports.
Why It Matters: “Robinhood became immensely popular during the coronavirus pandemic, particularly as homebound young people turned to online trading to pass the time and make money.”
- But it fell into regulatory controversy during the meme-stock frenzy after halting and limiting trading on several securities. Robinhood also had to “raise billions of dollars from its backers to comply with a request from the industry’s clearinghouse.”
Still, people love using Robinhood. The app continued to grow its user base during the chaos with 600,000 more joining in a single day, more than six times the typical number of sign-ups in a given month.
- The app’s own audience is primed to take a strong interest in the stock once it’s public.
Numbers To Consider:
- Prior to the GameStop saga, Robinhood had been valued at $12 billion after a 2020 funding round.
- Comparably, Crypto marketplace Coinbase is going public and has been valued at more than $100 billion.
The Outlook: Robinhood could go public as soon as Q2, but nothing is final yet. Terms haven’t been set either, but Robinhood did select Nasdaq as the venue for the listing.
We’ll definitely give you the scoop on Robinhood’s financials when we get a hold of their filings.