March 28, 2024

Robinhood ends first day on the Nasdaq with a dip

Robinhood ends first day on the Nasdaq with a dip

Robinhood shares closed down 8% on the first day of trading.

Robinhood shares began trading on the Nasdaq exchange onThursday under the ticker HOOD, starting at $ 38 apiece. The company planned to receive a market valuation of $ 32 billion.

In the first half hour of trading, the shares fell by about5% up to $ 36. An hour later, the price dropped below $ 34. Robinhood closed its first day of trading with a market value of $ 29 billion. The shares were expected to be priced between $ 38 and $ 42, with a valuation of $ 32 billion.

However, several factors have put pressure onRobinhood shares. Negative sentiment due to GameStop, low institutional demand on Robinhood and stock buying for resale on day one – All this together led to a decrease in price. On the first day there were more sales than purchases. 

For Robinhood, such a dismal first day isn't a big deal. On a company's first day of trading, it is almost impossible to predict the long-term stock price. 

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