Robinhood has sunk in its initial public offering after failing to win over the retail investors its needs for its long-term growth
The online trading platform dropped as much as 12 percent, before rising closer to its $2.1 billion IPO
Robinhood promotes itself as the go-to platform for young millennials who are looking to crack into the share market.
It shares opened at the $38 offer price, but fell to around $35 which gave the company a $31 billion market value when you take into account employee stock and other holdings.
This figure is well below the $36 billion valuation the world was waiting for.
Analysts say the trading app had a large portion of shares allocated to retail stock buyers… and ended up selling around 25 percent of these, not the 35 percent that was set aside.
The IPO was also plagued by Reddit users, with users urging other investors to avoid Robinhood altogether.
It comes as investors may start to doubt whether or not the platform can actually deliver on its promise to “democratise” and expand access to capital markets.
