Hey Gotraders,
Stock trading app Robinhood IPO-ed in the US today! They sold 52.4 million shares at $38 a share, raising nearly $2 billion. Following their Wall Street debut, the company is now valued at a whopping $32 billion! 🤑
What is Robinhood? Robinhood is a trading app that lets investors trade stocks, options, exchange-traded funds, and cryptocurrency without paying commissions or fees. Robinhood has surged in popularity among retail investors, especially young and first-time investors. Robinhood has an estimated 22.5 million funded accounts (those tied to a bank account) as of the second quarter. That’s up from 18 million from the previous quarter, which was an increase of 151% from a year earlier!
Goldman Sachs (GS) and JPMorgan Chase (JPM) are the lead investment banks on the deal. Underwriters will have an option to buy an additional 5.5 million shares.
Why is this important? Robinhood experienced record trading levels during the pandemic and amid the meme stock craze earlier this year. In its updated prospectus, revenue jumped 309% in the first quarter to $522 million from $128 million a year prior. They estimate second quarter revenue of $546 million to $574 million, up from $244 million compared to a year ago.
P.S. Robinhood will be available on Gotrade under the ticker HOOD soon! Look out for it! 😉
📉 Facebook shares are down after earnings 🔻
Shares of social media giant, Facebook (FB), fell nearly 4% in extended trading as the company reported earnings. They beat analysts’ expectations on both earnings and revenue, and reported its fastest revenue growth since 2016! However, they warned about slowing revenue growth in the quarters ahead. Uh-oh…
Shares of Facebook are trading around $358.45 in extended trading.
📉 Uber shares plunge as Softbank dumps its shares ⏬
Softbank, one of DiDi Chuxing’s (DIDI) largest investors, is selling about one-third of its stake in ride-hailing company Uber (UBER) to cover some of its investment losses. Softbank has lost about $4 billion on its DiDi position in total. They are planning to sell off 45 million Uber shares, which will have a 30-day lockup.
Shares of Uber fell over 4% in after-hours and are trading around $44.05 at the time of writing.
Top movers & shakers 🎢
What else is making headline news 📰
China will still allow IPOs in the United States, securities regulator tells brokerages.
Ford (F) says reservations for F-150 Lightning electric pickup top 120,000.
Fed holds rates near zero, says economy has gotten better even with pandemic worries.
Qualcomm (QCOM) shares rise as revenue pops 63% driven by chip sales.
PayPal (PYPL) comes in light on revenue, profit drops from last year.
Oil giant Shell (RDS.A) raises dividends and launches $2 billion share buyback as commodity prices soar.
Credit Suisse (CS) investigation into Archegos scandal reveals multiple failings but no ‘fraudulent or illegal conduct’.
Popular companies releasing earnings this week 💰
Thursday: MicroStrategy (MSTR), Digital Realty Trust (DLR), LTC Properties (LTC), ArcelorMittal (MT), Nokia (NOK), Dr Pepper (KDP), Twilio (TWLO), Pinterest (PINS), Amazon (AMZN), Comcast (CMCSA), T-Mobile (TMUS), AstraZeneca (AZN), Altria Group (MO), Mastercard (MA), Credit Suisse (CS), Hershey’s (HSY)
Friday: Exxon Mobil (XOM), Chevron (CVX), Procter & Gamble (PG), Colgate (CL), Michael Kors (CPRI), Cabot Oil & Gas (COG)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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