Stock trading company Robinhood had a disappointing initial public offering on Wall Street.
On Thursday, the company began offering its stock — trading under the …
Stock trading company Robinhood had a disappointing initial public offering on Wall Street. On Thursday, the company began offering its stock — trading under the ticker “ HOOD ” — at $38 per share. By market close, the price had dropped 8% to $34.82; on Friday afternoon, shares were trading at roughly $36.25. CNN Business reports that the average company witnesses its stock price rise by 33% during its first day of trading; only one-quarter of American IPOs see decreases in prices. An initial public offering — usually abbreviated as “IPO” and colloquially referred to as “going public” — is a private company’s first attempt to fundraise by selling its shares on a stock exchange. CNN Business adds that despite its lackluster first day, investors are optimistic about Robinhood’s future: At the IPO price, the deal values Robinhood at about 21 times trailing revenue, according to Renaissance Capital.
