Tag: Robinhood IPO

Robinhood Review 2022: How it Works and All you need to know about this Stock Trading App

Robinhood Review 2022: How it works and all you need to know about this stock trading app
Robinhood Trading App Review 2022 – Robinhood Review

Written by: FrankNez Team

Robinhood is an online investing platform that offers commission-free stocks with high-yield cash management offerings.

This popular stock market trading app does not charge commission for stocks and cryptocurrency trading.

Robinhood, the financial technology company offers trading in stocks, ETFs, other options, and cryptocurrency.

Moreover, this online brokerage provides web and mobile-based services which will allow you to invest and trade easily.

Additionally, the mobile-based services of this platform have made it stand out from its other competitors.

You may be wondering about many questions arising in your head about Robinhood & Robinhood stock.

No worries!

Here in this article, you’ll find the answers to your queries and get to know all the details about this popular online brokerage like- How does it make money, the pros & cons of Robinhood, Robinhood stock price, the behavior of Robinhood in cryptocurrency & its future, and benefits of long-term investing in stocks & cryptos.

Keep scrolling to read more.

Let’s begin!


         Overall Rating: 3 / 5                                               OPEN AN ACCOUNT         Account Minimum: $0         Fees: $0
Robinhood Review – Robinhood Trading app

Understanding Robinhood

With more than 13 million users, Robinhood is the best platform for active investors or younger investors who want commission-free trading and investing on mobile.

If you want to invest in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, you can use this mobile and web trading platform to invest long term.

Apart from it, Robinhood (a popular stock trading app) went public in July 2021 and its share price was set at $38 for IPO (Initial Public Offering).

Also, Robinhood was listed on the Nasdaq stock exchange under the symbol “HOOD.”

Recently, Robinhood’s CEO Vlad Tenev said that the company is planning to release the feature that allows customers to trade stocks outside of market hours.

The company named this feature, “Hyper-extended hours.”

According to Bloomberg, Robinhood stock is the favorite stock of Cathie Wood’s ARK funds and they’re purchasing the stocks every week since October 2021.

Last week, ARK Funds have bought about 2.45 million shares of Robinhood markets.

Robinhood Business Model- How the company generates income

With no minimum and no fees for trading in stocks, cryptos, and ETFs, the company has to generate income as a business to be sustainable.

This online brokerage makes money from market makers and some other ways.

Here are the ways through which the company generates revenue.

Payment for Order Flow

In 2021, the company generated 75% revenue through the process payment for order flow (PFOF), in which the company directs their customer’s orders equity and options to a particular market maker and the company receives payment for this compensation.

Hence, PFOF is the major income stream for the company.

Payment for order flow unfortunately plays against retail investors.

The SEC has talked about banning the practice since it allows market makers to manipulate the stock prices.

Stock Loan Income

Robinhood generates revenue by lending margin securities to counterparties.

Furthermore, the company keeps all money it generates from lending your stock and does not share it with you.

This is a big problem because large financial institutions make more money from the user while orders are processed through dark pools.

Borrowing Uninvested Cash

Robinhood generates income by borrowing uninvested cash and depositing this cash in interest-bearing accounts.

Membership Fees for Robinhood Gold

Robinhood Gold program is a paid subscription service that allows users to benefit from premium features like margin trading, Level II Market Data, professional research, and enhanced quick access to deposits.

It is also one of the income sources of the company.

Robinhood Gold costs $5 per month.

Also, it gives a free trial of 30 days.

What can you invest in on Robinhood?

Robinhood Review
Robinhood Review 2022 – Robinhood trading app

Robinhood is a popular trading platform that allows the user to invest in stocks, cryptocurrencies, Exchange Traded Funds (ETFs), and options.

If you want to do commission-free trading in stocks, ETFs, and cryptocurrencies, then Robinhood is great for you.

Moreover, the company allows the investors to buy portions of stocks without paying the full share price.

It gives a free stock upon making referrals and opening the account.

When it comes to investing in cryptocurrencies, Robinhood allows to trade in several digital currencies including Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Bitcoin SV, and Dogecoin.

Most importantly, Robinhood has introduced IPO access for traders.

Besides, Robinhood does not offer the ability to invest in mutual funds, forex, bonds, and futures options.

The pros and cons

Pros 

  • Simple, Easy to Use, and Easy to navigate                          
  • Free stock, ETFs, Cryptocurrency Trading                                  
  • No account minimum   
  • IPO access                                                           
  • Cash management accounts
  • Margin investing and Fractional shares

Cons

  • Limited customer support
  • No mutual funds and retirement accounts
  • Limited investment offerings
  • Limited investing research and trading tools

The Pros explained

Robinhood, the popular brokerage in the US, is extremely easy to use and accessible for people of any age and any income.

Robinhood is a mobile-first company that differentiates it from other companies.

Its trading app and web-based platform are well-designed and more than enough to trade.

The new investors or inexperienced users can easily trade on it due to its simple and user-friendly features.

When it comes to costs, Robinhood provides commission-less trading with no minimum fees.

You can invest in stocks, cryptos, options, and ETFs for free.

Furthermore, the company offers fractional share trading, and you can invest in expensive stocks without much capital.

Additionally, it gives quick access to deposited cash.

The account opening process in Robinhood is fully digital and free.

Rather you get free stock upon opening the account and by referring the new members.

Last but not least, the company offered IPO access in July 2021 to benefit its users.

If you trade often, the savings can be huge on this platform due to the lower cost.

The Cons explained

Along with plenty of advantages, there are a few cons of it.

Robinhood does not offer to trade in mutual funds, bonds, and futures trading.

The research, educational resources of this financial company is limited.

It provides basic tools for the services and users can access professional research by purchasing paid membership of Robinhood Gold.

The customer support available in this stock trading app is limited.

Although, the company had made necessary improvements to its customer service in the last year.

The Robinhood scandal has blown up after the freezing of buying ‘meme stocks’ in 2021.

The company lacks full trust from retail investors after restricting the rights to buy specific stocks from its users.

Recommended brokerage: Vanguard

Robinhood Stock Price and Recent Developments

Robinhood stock price
Robinhood stock price – Robinhood trading app review – Robinhood Review

Robinhood stock price has dropped significantly since its IPO and is currently trading around $15 per share.

Weeks back, Robinhood’s stock price dropped to 11.61 USD and the stock hit the lowest price of 11.15 on January 24.

In June 2021, the company’s funded accounts rose to above 22 million.

Besides, Robinhood’s stock price hit an all-time high of 85% on Aug 4 at 85.00. 

On the other hand, the company stated Q4 results on January 27.

The company lost 49 cents per share on sales of 362.7 million in Q4.

In the current stock market, HOOD is one of the IPO stocks to watch.

The company is growing popular among young investors to trade stocks, cryptos, and NFTs.

Robinhood (HOOD) and Cryptocurrencies

Robinhood crypto - Robinhood cryptocurrencies, robinhood crypto list,
Robinhood cryptocurrencies – Robinhood Review – Robinhood app review

Robinhood, one of the best online stockbrokers generated huge transaction-based revenue within cryptocurrencies in Q4 2021.

It has a fast-growing cryptocurrency business as the company launched crypto gifts.

Most importantly, the company has introduced cryptocurrency wallets to 1,000 users as a part of the beta test.

Crypto wallets will help the users to transfer digital currencies in and out of the Robinhood app.

The rollout of crypto wallets may be expanded to 10,000 users in March.

Adding a wallet will help the traders to transfer their digital assets out of the online platform to invest. 

Moreover, the company is planning to test new crypto-related functionality on its stock trading app which will allow the user to get statistics, transactions on blockchain at a glance.

The introduction of crypto wallets closed the gap among Robinhood app and cryptocurrency exchanges which will increase the trading in crypto markets.

Most of the US brokers don’t offer crypto wallets, therefore the rollout of crypto wallets on Robinhood will have positive impacts on Robinhood accounts opening in the future.

When it comes to Coinbase vs Robinhood, our personal choice when it comes to investing in cryptocurrency is Coinbase.

Investing in stocks and cryptos is great in so many ways.

If you’re thinking, why should you invest in stocks and cryptos?

Here we’ve discussed the importance and benefits of long-term investing.

Read on to find ways to become financially independent.

Related: How to invest in cryptocurrency for beginners

Importance of Long-term Investing in Stocks & Cryptos

A long-term investment strategy is like holding assets such as stocks and cryptos for more than a full year.

Anything under a year is a short-term investment.

Long-term investment requires patience and discipline, but it gives incredible outcomes.

Market volatility is a prime matter in investment as the prices fluctuate regularly.

The higher the volatility, the higher the investment’s price fluctuation and the higher the risk.

Here is why you should go for long-term investment.

Long-term holdings in stocks and cryptos exhibit lower volatility, greater profits as compared to short-term.

Assets such as stocks & crypto give higher returns over a long time. It maximizes the growth potential of your savings.

Now, investment in US stocks and digital currencies is far better than bonds and gold investment.

When you watch your investment portfolio grow, your satisfaction increases more.

Stocks are long-term investments and generate better long-term returns.

The longer you invest in stocks, the longer your money will grow.

Among asset classes, the stocks have surpassed all other asset classes.

If you want to keep your money multiplying and become a better investor, it’s wise to go for long-term investment so that the market bump can’t knock you.

Because, when the prices go up and down, you can handle it by remaining patient.

Apart from making you financially strong, the investment makes you disciplined with your money.

It’s a necessary rule to succeed in your life financially.

Long-term holding means fewer trading fees because you will need to pay the fees every time you trade.

Also, it’s easy to do, you can start trading in Robinhood stock-trading app, just by implementing the strategy and patience to make the most of your returns.

Or through a more traditional broker like Vanguard.

Through investment in the stock market, you can benefit from various trading strategies.

Apart from stocks, cryptocurrency is an attractive investment and future of technology that gives high returns.

Long-term investment in cryptocurrency is good for investors to recover and get profits.

You can invest in crypto on Robinhood or cryptocurrency exchanges.

Long-term holding in popular cryptocurrencies such as Bitcoin, Ethereum can harvest good returns in 2022.

If you’re a new investor and can’t tolerate big risks, short-term investment cannot work for you, rather you must go with long-term holding.

Digital currencies are rising globally, and the number of investors is investing in them. 

They provide a safe and long-term store of value.

Like other assets, cryptocurrency also exhibits volatility.

If you’ll invest in stocks & cryptos for the long term, there would be less fear, less risk, less trading cost, lower tax rates, and more returns.

Also, you’ll be able to buy the future house, vacation, and can save your education or retirement.

Along with your regular income, trading is the way by which your money keeps multiplying, and you can earn more and do more.

The Bottom Line

Robinhood Review
Robinhood Review – Robinhood trading app review

Robinhood, the US-regulated broker is best for active traders who want to invest in assets with no commission.

Whether you’re looking to invest in cryptocurrencies or stocks, Robinhood could be an option for you due to its minimalistic trading platform that has made it easy to buy and sell assets.

The biggest perk of trading on Robinhood is a lack of fees with no costs.

However, payment for order flow is affecting the entire stock market as a whole.

Retail investors are ditching the trading app.

Whether you’re in school or college or doing a corporate job, start investing today to achieve financial wellness.

Start with a positive mindset and stay flexible because your today’s decision can make a huge difference in your life.

Become financially literate and learn how to invest in the stock market and crypto, and how to start an online business here.

I’m committed to guiding you on your journey to achieve financial freedom.

In a nutshell, long-term investment and business allows you to become financially independent and follow your dreams.

Written by: FrankNez team

Twitter | Facebook | Instagram | YouTube | LinkedIn


Executives Backstab Robinhood By Selling 100% of Their Stock

executives sell robinhood stock
The Tokenist – Robinhood Stock

Chief Marketing Officer Christina Smedley just sold 100% of her Robinhood stock. Do you know what the responsibilities of a CMO are? To generate revenue by increasing sales through marketing. You don’t sell your entire stock unless you don’t believe in that company anymore.

But that’s not all, there’s a list of executives who sold their stock too. When did all of this happen? All within the first week of Robinhood’s IPO, 8/4 to be exact.

franknez.com

Welcome to Franknez.com – today’s investing news, Robinhood stock. Things just got interesting.

Lets get started!

Shareholders Sell Robinhood Stock

Robinhood stock tanked on Thursday, 8/5 after several executives filed to sell their stock the previous day. The stock had risen past $70 and traded around $80 after hours.

Robinhood Stock closed at $50.97 per share.

The companies shareholders followed shortly after Vlad Tenev, the CEO of Robinhood had sold approximately 7.2 millions shares on IPO day. The IPO flip made him a whopping $275 million dollars.

Robinhood warned that investors who sold or ‘flipped’ their IPO shares within 30 days would be restricted from participating in future IPO deals, REUTERS. It seems like executives sought there chance while HOOD stock jumped up during its momentum run.

But will Robinhood be able to maintain its momentum after this pump and dump? Let me know in the comment section below.

CFO & CPO Sell HOOD Stock

That’s right, Robinhood’s CFO Jason Warnick sold 25% of his stake in HOOD stock. Jason spent nearly 20 years working for Amazon as VP of Finance and joined Robinhood back in 2018.

And we have Chief Product Officer, Aparna Chennapragada who sold 20% of her stake in the tech company. This ex. Google executive was also a director on the board of Capital One. The primary goal of a CPO is to lead and create products that deliver both value to their customers and business.

I had actually seen this information straight from Andrei Jikh on Instagram stories where he posted a screen shot saying, “Wow, here are Robinhood’s executives selling shares.. This doesn’t inspire confidence.”

If you’re not familiar with Andrei, he creates finance videos on YouTube and has been featured in Graham Stephen videos before as well.

Andrei is a Robinhood user but has not yet invested in Robinhood stock. In a recent video, he mentions he’s happy he did not invest in HOOD stock on IPO day but that he is going to keep an eye on the stock for now and see how it performs.

Analysts Stay Cautious

Some analysts are staying cautious. “We cannot in good faith recommend investors get involved in HOOD on either the long or short side,” Wolfe Research analyst Steve Chubak wrote in a note, initiating coverage on the Robinhood with a hold-equivalent rating and a share price target of $45, via. Aljazeera.

So, is Robinhood stock worth the buy? First, ask yourself if these selloffs are something a confident company would do. Second, do you trust them?

Want More Stock News?

Subscribe to the blog so you’re notified when a new article is published. Franknez.com is publishing weekly articles on stocks to buy, stock market and finance news, momentum trading, and entrepreneurship posts.

You can follow me on Twitter | Facebook | Instagram and you can support the blog on Patreon.

Read: Why new retail investors should avoid investing with Robinhood


Will Robinhood Stock Be Able To Maintain Its Momentum?

Robinhood Stock
Robinhood Stock Price

Robinhood stock, ticker symbol HOOD closed at $70.39 today. The stock has is dropping after hours. Today’s momentum reached 172 million in volume. Will HOOD stock be able to keep the momentum going?

franknez.com HOOD Stock

Welcome to Franknez.com – today I want to discuss Robinhood stock news. Robinhood has been all over the place with the media. For the most part, it’s been negative. So, lets talk about it.

Robinhood Stock Surges Past IPO Price

Robinhood went public on Thursday, July 29th on the Nasdaq under ticker symbol HOOD. The stock’s IPO price was $38 but fell 8% it’s first day due to a massive selloff from IPO shares by none other than Robinhood’s own CEO, Vlad Tenev.

Cathie Wood, CEO of Ark Invest took advantage of the dip and bought 1.3 million shares of Robinhood Stock. Ark Invest has refrained from commenting.

Robinhood is currently one of Fidelity’s “top traded stock” which has sparked a small chain reaction of investor interest. It’s no surprise the general public, who is unaware of Robinhood’s and Citadel’s malpractice in the market, have hopped on the Robinhood stock train.

Contrary to what mainstream finance platforms are saying, Robinhood stock has not been a top mention on Reddit’s WallStreetBets. This deceit has me thinking whether the media is trying to redirect retail investors to buy Robinhood stock.

A diversion if you ask me.

22 Million Users And Falling

The mainstream media fails to recognize that a massive community of retail investors is ditching the Robinhood app and using alternatives such as Vanguard and Fidelity.

Investors are also moving to exchanges such as Kraken for their cryptocurrency. Will ignoring these two factors prove to be a good idea for investors buying Robinhood stock? We’ll find that out with time.

Will Robinhood Stock Keep Going Up?

Atlantic Equities gave Robinhood an overweight rating and a $65 per share price target within it’s first 12 months, ahead of its IPO. Investors are betting on the idea that Robinhood’s referral program will pave the way for future growth.

But will it be enough? Big YouTubers in the finance niche have even stopped sharing their Robinhood referral links to their mass audience.

While large institutions and investors might be able to support their billionaire friend, retail investors have a different sentiment.

Retail Investor Sentiment

Reddit stocks are stocks the Reddit community loves. Go to r/wallstreetbets there is very little to no talks about HOOD stock. The little there is isn’t positive at all.

Retail investors don’t trust the company anymore and for that reason, Robinhood is NOT a Reddit stock.

Robinhood will grow if new retail investors flock towards the app again and if they invest in the stock. However, retail investors are warning new retail investors about the GameStop and AMC manipulation.

With several 100/100 short squeeze scores, AMC’s short squeeze has been prolonged through numerous naked shorting tactics behind dark pool data.

So, although Robinhood has a rather great app interface, the new generation of retail investors ties them too closely to Citadel Securities; the hedge fund who tried to bankrupt AMC and GameStop.

Let me know what you think

Franknez.com

Are you investing in HOOD stock? Where do you think Robinhood is headed? What would make you trust in Robinhood again?

You can support the blog by sharing this article on your favorite social media platform.

Twitter | Facebook | InstagramPatreon

Not investing in stocks? Not to worry, this article will teach you how.


Robinhood’s Vlad Tenev Dumps HOOD Stock On IPO Day

Robinhood IPO
Robinhood IPO – HOOD Stock

Robinhood went public on Thursday, July 29th. The company is currently facing massive scrutiny over the Citadel-Robinhood market manipulation. Retail investors were prohibited from purchasing GameStop and AMC stock early this year as the affiliate hedge fund partner, Citadel, lost billions during the beginning of the momentum rally.

Retail investors continue to hold and buy the stock in efforts to squeeze shorts out of their long-short positions. The novice investor is no longer looking to invest with Robinhood’s trading app but rather moving towards a more secure and traditional way to invest.

Brokers such as Vanguard and Fidelity are becoming more popular as they provide new retail investors with peace of mind when it comes to buying the stock they want. Now, Robinhood has an entire community of momentum traders betting against the company as a whole. And while not everyone in the community is upset with Robinhood, the negative sentiment within the community weighs heavy.

franknez.com

Welcome to Franknez.com – lets talk investing, entrepreneurship, and just winning in life. Here’s the latest in market news.

Lets get started!

HOOD Stock

Robinhood’s stock ticker symbol, HOOD, started trading at $38 before falling to around $34 per share. The company currently has a market cap of $31 billion dollars. Robinhood’s expected valuation sits at approximately $35 billion dollars. David Trainer, Chief Executive of New Constructs believes the company is overvalued is worth more around $9 billion dollars.

“We think the stock is worth no more than $9 billion and that Robinhood will likely not be able to continue the robust growth it saw in 2020 due to looming regulatory risk, increasing competition and an undifferentiated service.” – David Trainer

As a retail investor who has seen the manipulation behind AMC and GameStop stock, I believe Robinhood is going to have an upper hand during its initial growth before finally tumbling.

“What’s weird about today,” said Carnegie Mellon University associate professor of finance Bryan Routledge, “is there was no news other than the shares started trading. That is puzzling.”

So, there’s already some concern as to why HOOD stock is gaining traction at the moment.

Robinhood IPO – Worst Debut in History

According to experts, Robinhood has had the worst IPO in history dethroning the 2007 IPO of MF Global Holdings Ltd which ended its first day down 8.2%. Robinhood’s was 8.4%.

Luckily for Robinhood, Cathie Wood, CEO of Ark Invest purchased $65 million dollars worth of HOOD stock. This volume pump might be the reason why HOOD stock is trending upwards at the moment.

Ark has not responded to request for comments. Other investors are staying on the sidelines due to valuation concerns and the negative sentiment from retail investors.

What’s preventing investors from buying HOOD stock is the lack of leadership in the company. Vlad Tenev, Robinhood’s CEO, has failed to take responsibility for buying restrictions early this year. What angered retail investors was more so that the platform prevented them from buying only momentum stocks (meme stocks).

The community has felt an insane amount of market manipulation all year with no help from regulators regarding the naked shorting and overleveraged positions and dark pool trading.

Will Robinhood Stock Go Up?

Robinhood would need to continue growing for its stock price to go up. Investors would need to deem HOOD stock not risky and believe in the company’s vision.

However, Vlad Tenev is under high scrutiny at the moment. The link that’s missing or broken, is trust.

Vlad Tenev Dumps Robinhood Stock on IPO Day

On IPO day, Vlad Tenev dumped approximately 7.2 million shares according to this SEC From 4. The dump netted Vlad around $275 million dollars. According to Reuters, Robinhood warned that investors who sell or “flip” their IPO shares could be restricted from participating in future IPO deals.

“We won’t prevent you from selling shares you get through the IPO Access program,” the company said on its website.

“However, if you sell IPO shares within 30 days of the IPO, it’s considered “flipping” and you’ll be restricted from participating in IPOs for 60 days.”

Vlad Tenev, CEO of Robinhood flipped his own IPO shares the same day the company went public.

Should You Buy Robinhood Stock?

I personally couldn’t invest in a company leader that was a culprit to freezing momentum trading to prevent a hedge fund from losing more money than they’d like to. The hypocrisy behind Robinhood’s IPO flip also doesn’t align with my values. And for those reasons I’m out.

Can Robinhood be trusted?

In my personal opinion, no. Robinhood is an affiliate partner to one of the biggest hedge funds shorting both AMC and GameStop stock. These short sellers have driven the stock prices down through manipulation tactics such as naked shorting and dark pool trading.

As AMC and GameStop share prices began to surge, Robinhood restricted retail investors from buying the stocks. When questioned, Vlad denied protecting its hedge fund affiliates. Retail investors and large influencers such as Elon Musk were quick to see past the CEO’s story.

From what I’ve seen, Robinhood has an amazing platform layout which makes the shame that much bigger. Vlad could gain the trust back from retail investors by uncovering the manipulation that went on with it’s clearing house, Citadel Securities.

Citadel Securities is now facing federal investigations.

Want More Stock Market News?

Be sure to subscribe to the blog so you’re notified when a new article is published. Franknez.com is publishing weekly articles on stocks to buy, stock market and finance news, momentum trading, and entrepreneurship posts.

You can follow me on Twitter | Facebook | Instagram and you can support the blog on Patreon.

Read: Why new retail investors should avoid investing with Robinhood


© 2022 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: