The Robinhood (HOOD) IPO kicked off its first day of trading down 8.37 percent from its initial IPO price. After opening at $38 and hitting a high of $40.25 today, Robinhood closed at $33.35 with over 100 million shares traded.
Robinhood has been the subject of great controversy in 2021 over how the company handled the early days of the GameStop (GME) movement. As GameStop's stock surged in price and people rushed to buy shares, Robinhood placed trade restrictions on the stock. This move – and others – repeatedly landed the trading app in news headlines across the globe for all the wrong reasons. At different points in the first half of 2021 Robinhood also made headlines for their potential gamification of investing, and the company was sued by the family of a trader who took their own life over a perceived $700,000 debt. It wasn't just the headlines Robinhood landed in, though, as the company's CEO was called to testify before Congress.
Despite a batch of controversies and bad press, Robinhood filed to go public on July 1, 2021, after months of speculation the company would do so. With the first day of trading Robinhood now in the rear-view mirror, one would have to think the company hoped for better than an 8.37 percent drop in share price from its $38 opening. It will be interesting to keep an eye on Robinhood's share price in the days and weeks ahead. With the company now public, a continuation of negative press or being dragged before Congress carries potentially serious consequences for investors.