Tag: Robinhood Stock

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.

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

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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?

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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?

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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

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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.

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

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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


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