Robinhood’s public trading is off to a rocky start
Robinhood started trading at $38, dropped about 10 percent, recovered, but still closed down 8 percent at $34.90 on its first day of trading. It’s the worst first day among 51 firms that raised as much as Robinhood or more, according to Bloomberg. It’s also bad news for Robinhood’s experiment at offering retail investors a chunk of the IPO.
Robinhood’s shares priced at the bottom of the targeted price range of $38 to $42 a share, perhaps because of concerns about volatility or perhaps because Robinhood wanted to ensure a pop for its retail investors. And though Robinhood had said it would allocate up to 35 percent of its shares to retail, only 20 percent actually went to retail, which “indicated less interest than expected,” according to…