On the first day of trading, Robinhood sees a steep drop of 12.2%, but then recovers.
According to the Associated Press, the brokerage app Robinhood debuted in the stock market on Thursday and had a dramatic dip of 12.2 percent on its first day of trading before rebounding.
The initial price of Robinhood Markets was $38. It increased by 5.9% in the first hour of trading before plummeting by 12.2%. It had recovered by the afternoon, with a price of $36.22 at 2 p.m. Eastern Time, following the decrease. At the time of writing, the popular trading app’s stock had not yet hit its starting price.
“I expected a pop,” said 26-year-old Robinhood user Jeffrey Colindres-Soto to the Associated Press. “But once it started dipping the way it did, I think a lot of people just started to leave because they knew there was where the selloff was going to happen.”
Following its launch in 2013 as a commission-free stock trading software, Robinhood is now valued at approximately $30 billion.
See the list below for more Associated Press reporting.
Robinhood reshaped the stock market by bringing millions of new investors to Wall Street, and the response was overwhelmingly positive at first.
Its stock made erratic fluctuations, which was perhaps appropriate for a company that upended the investing industry. Robinhood Markets was down 4.7 percent by 2 p.m. Eastern Time from its original price of $38 set late Wednesday.
The highly anticipated offering, which had previously been priced at the low end of its predicted range, is off to a slow start. Given Robinhood’s unusual strategy to reserve a large portion of shares for its own smaller-pocketed clients rather than large professional firms, the stock could experience continued significant fluctuations throughout the day.
The company’s current stock price puts it on level with Kroger and Old Dominion Freight Line, but its impact on pop culture could be even greater. Robinhood has sparked a lot of interest among users and critics alike.
After eliminating trading fees and making investing easier and even enjoyable with its mobile app, the company has grown rapidly since its launch in 2013, with an estimated 22.5 million funded accounts. More than half of its customers are first-time investors, giving them a leg up on the stock-owning, wealthier households that had been edging them out for years.
Robinhood, on the other hand, has drew. This is a condensed version of the information.