Please ensure Javascript is enabled for purposes of website accessibility

Robinhood Files Confidentially for IPO

By Eric Volkman - Mar 23, 2021 at 10:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One source says the white-hot securities brokerage operator could go public by the end of June.

One of the most talked-about stock brokerages is about to list itself on the stock market. Following media reports Tuesday that stated Robinhood has filed confidentially for an initial public offering (IPO), the company confirmed the speculation in a post on its official blog.

In that post, Robinhood said that it has not yet set the price range, nor the number of shares that will be sold in the offering. As for the timing, the company only said that it "is expected to take place after the [Securities and Exchange Commission] completes its review process, subject to market and other conditions."

A woman looking at a set of indexes and graphs.

Image source: Getty Images.

According to Bloomberg, which initially broke the story, "a person familiar with the matter" said Robinhood might list as soon as late in Q2 (i.e., by the end of June). The news agency added that its sources say the tech-heavy Nasdaq is the company's listing venue of choice.

Robinhood continues to be the standard-bearer among brokerages focused on youthful traders. With a robust Millennial customer base, it has very attractive demographics and operates in a middle-man industry that can be extremely profitable. These factors should make it an extremely hot stock for many right out of the gate when and if the company launches that IPO.

While Robinhood is on the way up for the most part as a company, it has had its stumbles. Most notably, it found itself in need of emergency funding when many of its customers joined the rush to buy GameStop (GME 0.49%) shares following that stock's contrarian, internet-fueled surge in popularity earlier this year. Investor interest in Robinhood stock, then, will likely be tempered by the memory of the GameStop crisis, as there are sure to be lingering doubts about its management of such situations.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GameStop Corp. Stock Quote
GameStop Corp.
GME
$96.13 (0.49%) $0.47
Nasdaq, Inc. Stock Quote
Nasdaq, Inc.
NDAQ
$147.71 (1.08%) $1.58

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.