Learn how to invest in Robinhood stock when the IPO arrives this week (expected July 29th). Open an account with Robinhood as they are offering limited IPO shares to customers.
The S-1 filing released July 19th indicates that they will set aside 20-35% of IPO shares ($440 million to $770 million) for Robinhood customers (more below)!
Robinhood stock will trade on the Nasdaq under the stock symbol “HOOD”.
If you’re unhappy with Robinhood, try Tradestation for IPO access or M1 Finance (for long-term buy and hold investors) as alternatives.
Table of Contents
Latest Robinhood Stock IPO News
07/23/2021: Barron’s: The Robinhood IPO Is Coming Soon. Steer Clear.
07/21/2021: NYT: Robinhood’s Guinea Pig for Upending Public Offerings: Itself
07/21/2021: Robinhood faces ‘looming regulatory risk’ as it gears up for its IPO
07/21/2021: Robinhood IPO: Still A Bad Bet For Investors With Alarming Risk
07/19/2021: Robinhood Sends Emails to Users to Request IPO Shares via IPO Access (see below)
07/19/2021: Robinhood warns retail trading is slowing down, especially in cryptocurrencies
07/19/2021: Amended S-1 Filing Released Today. Read here.
07/18/2021: Robinhood: Serious Fun (The Generalist)
07/15/2021: Robinhood, Others Upend Rules for Early IPO Trading
07/09/2021: Robinhood gives founders second chance at $1.4 billion windfall
07/06/2021: The Robinhood Conundrum
07/02/2021: Robinhood is earmarking 20% to 35% of its own IPO shares for customers
07/01/2021: Robinhood IPO Filing is now Available
06/24/2021: Robinhood’s IPO Plans Slowed By SEC Review
06/08/2021: Robinhood Markets Is Said to Now Target July for IPO
06/01/2021: Robinhood Adds New Board Members to Advance IPO Push
Older news… (35+ more articles)
What is Robinhood?
Robinhood is a Silicon Valley startup that revolutionized online investing by offering a commission-free trading platform. Popular with younger investors, you can place unlimited stock, bond, or crypto-currency trades on the Robinhood app and pay no fees.
The disruptive business model attracted a few copycat brokers, namely M1 Finance and Webull, then caused Charles Schwab to eliminate stock trading fees. Schwab’s move cascaded to the entire industry.
Now that most online brokers are commission-free, Robinhood will likely offer other paid products to its customer base en route to becoming a profitable company. Banking services and retirement accounts are top on the list.
Is Robinhood Stock Publicly Traded?
Not yet. Robinhood stock is anticipated to begin trading on Thursday, July 29th, 2021.
The current shareholders include founders, early investors (venture capital firms), and employees.
You can find a list of private Robinhood investors at Crunchbase.
Since Robinhood is an online stock brokerage itself, the company is planning to offer IPO shares to its customers through its IPO Access platform. See more below.
Prominent venture capital investors include Sequoia Capital, Index Ventures, Ribbit Capital, Andreessen Horowitz, and ICONIQ Capital.
When is the Robinhood IPO Date?
The Robinhood IPO date is now anticipated to be Thursday, July 29th. Underwriters will price the stock Wednesday evening.
The stock should begin trading between about 11am and 1pm EST Thursday.
The S-1 filing was released to the public on July 1st, with an amended version published on July 19th.
Bookmark this page for the latest.
Will there be a Robinhood IPO?
Yes.
Most mature startups like Robinhood do eventually pursue an IPO. Original investors, including founders, venture capitalists, and employees, want to cash out when the valuation peaks. IPOs are often the peak valuation.
Some early investors and employees will hold on to stocks for the long term as well. But many will cash out at least some of their shares in the Robinhood IPO.
Robinhood IPO Terms
| Number of shares: | 55 million |
| Raise | Up to $2.3 billion |
| IPO price range | $38 to $42 per share |
| Valuation | Up to $35 billion |
| Lead Underwriter | Goldman Sachs |
What is the Robinhood Stock Price?
Since Robinhood is not publicly traded on a stock exchange, there is no Robinhood stock price yet. The price will update below when the stock begins trading.
What is the Robinhood Stock Symbol? Robinhood Ticker?
The Robinhood stock symbol will be “HOOD” and trade on the Nasdaq.
Should You Invest in the Robinhood IPO?
This is a personal choice — do not solely rely on this article to make your investment decision.
Please thoroughly read the SEC S-1 Filing before investing (next section).
Robinhood is a disruptive company with a massive user base whose wealth will grow over time. Robinhood is poised to offer more products to its 20+ million users. Future services may include retirement accounts, banking services, and credit cards.
For Robinhood customers, this is a unique opportunity to acquire IPO shares, which is still rare for retail investors.
Keep your expectations low if you request shares.
- Do not expect to receive shares
- If you do get shares, do not expect a lot.
- Do not expect a significant price jump or immediate returns.
- Expect volatility
Do not complain if you don’t receive shares, or if the price falls after the IPO. Receiving IPO shares is a privledge, not a right. Be grateful if you receive shares.
If you can request and receive shares via Robinhood IPO Access, AND you intend to hold the shares for five to ten years, I urge you to conduct research to determine if the opportunity is appropriate for your personal investment objects.
This is not a recommendation to buy or sell.
IPO investing is very risky, do not invest with money you cannot afford to lose.
Where can I find the Robinhood S-1 Filing?
View a PDF of the Robinhood S-1 filing below or download the July 1st version of it here.
Here is a link to the original Robinhood S-1 filing released on July 1st on the SEC website.
You can find the most recent filings, including S-1 amendments here. The amended July 19th version is here.
You can find a real-time SEC feed of the latest IPO filings on this recent S-1 filings page.
Will Robinhood Stock be a Motley Fool Stock Advisor Recommendation?
We won’t know until after the IPO if Robinhood will be a Motley Fool Stock Advisor recommendation. However, Robinhood stock fits the mold of high-growth, disruptive business models that the Fool typically recommends.
When the Motley Fool recommends a company, there is usually an immediate spike in the price. Fool newsletter subscribers are notoriously long-term-minded and rarely sell, meaning the stock price will continue to rise.
Robinhood may also receive a recommendation by the Motley Fool Rule Breakers (review) newsletter or other premium services. Both services have handily beaten the broader market since the early 2000s.
Read this Motley Fool Stock Advisor review to learn about the stock selection methodology and about how you can participate in excellent returns.
Stock Advisor is currently half off at just $99 for an annual subscription.
Can I Buy Robinhood Stock? Three Potential Ways
It is challenging to acquire shares of a stock that is not yet trading on the public markets. It is possible, but you may not be eligible, and it may not be worth the hassle.
For example, if you look at Uber stock, individual investors salivated for years, waiting for it to trade publicly. When it finally went public, the stock price fell. So you were better off waiting to buy the stock instead of buying it before the IPO.
There are three potential ways you may be able to acquire shares of Robinhood in the future.
- Buy Robinhood Stock in the IPO via the IPO Access Platform
- Buy Robinhood Stock After it Begins Trading
1. Buy Robinhood Stock in the IPO via the IPO Access Platform
Will Robinhood customers receive access to the Robinhood IPO?
Yes. However, it’s unclear how many investors will receive shares and how many shares per investor. If you request shares, keep your expectations low. You may not get any.
Request shares through the IPO Access Platform within the Robinhood app.
Update 07/19/2021: An email was sent to Robinhood customers on July 19th about accessing the Robinhood IPO through IPO Access. Here’s a screenshot of the email:
Update: 07/01/2021: Yes! As predicted in December 2019. The S-1 filing indicates that 20-35% of IPO shares will be allocated to Robinhood customers!
Robinhood is a unique case because its success is a result of its loyal customers, and they have an existing online stock brokerage platform.
Now that Robinhood IPO Access is live and they’ve completed at least one deal, the Robinhood IPO is ready to move forward. The initial S-1 filing shows that some shares will be set aside for Robinhood customers.
Here is what it says in the amended S-1 filing (July 19th):
We expect to offer approximately $440 million to $770 million worth of shares of our Class A common stock offered by this prospectus for sale to Robinhood customers through our IPO Access feature on our platform (assuming an initial public offering price of $40.00 per share, which is the midpoint of the estimated offering price range set forth above). See “Underwriting (Conflicts of Interest)—Participation by Robinhood Customers in the Offering.”
Employees will be able to sell 15% of their shares immediately and 15% three months later.
Update 05/20/2021: It’s official. Robinhood IPO access is here. Rolling it out gradually to all customers.
I expect the longest-standing customers, or customers with the most assets, will have the opportunity to buy more shares than new or smaller customers.
We’ve seen this happen before. In particular, Uber offered shares to drivers that completed a certain number of trips. Square offered IPO shares to its users. Airbnb did the same for hosts.
Since Robinhood is an online broker that may eventually offer IPO access anyways, I believe there’s a good chance of a Robinhood directed share program for customers.
Pay attention to the news, this page, and your email associated with your Robinhood account in case it happens.
Does this mean you’ll get free Robinhood stock? No. You’ll still need to purchase the shares, but you’ll get in at the IPO price, not the opening trade price.
Update 03/25/2021: Both predictions are coming true! Reuters reported on 03/25/2021 that Robinhood is building its own IPO platform!
2. Buy Robinhood Stock After it Begins Trading
People who invest on platforms other than Robinhood will likely not get access to this IPO.
Acquiring pre-IPO shares is usually reserved for wealthy and connected investors, so the most likely way you’ll ever own the stock is to wait patiently for the IPO to complete this month.
Your best chance to own the stock is by waiting for the IPO and making a purchase of Robinhood stock through a no-fee online brokerage account like Robinhood or M1 Finance, (which I like better than Robinhood better for long-term investors).
So what is the best online brokerage for buying Robinhood stock once it becomes public?
Robinhood, of course!
But it’s not my favorite online broker overall.
As an individual investor, you’ll want to open an account with a commission-free broker. That way, you’ll invest most of your money instead of waste it on fees.
I’ll go over one of my favorites below. It’s also commission-free and will make it easy to buy Robinhood stock after the IPO.
What is the Best Online Broker to Buy Robinhood Stock, other than Robinhood?
For investors looking to participate in IPOs, TradeStation and Webull offer IPO investing to customers and has been doing it longer than Robinhood. However, you’re never guaranteed a share allocation, and most high-demand IPOs will not be available.
Robinhood is for active amateur to intermediate traders. Long-term investors may consider other platforms that are better for dividend reinvestment.
I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, no-fee online broker for beginner to advanced investors. It’s easy to get started. As your investing skills and portfolio mature, M1 is one of the best platforms to scale.
Investing in stocks is 100% free on the platform. They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here.
The platform is more intuitive than traditional brokers because it’s built on a modern technology platform. You create portfolio “pies” that contain all the stocks and ETFs you want to own and in what percentages. Simply add Robinhood stock to your portfolio pie.
Conclusion
For ordinary investors, it will be challenging to acquire pre-IPO Robinhood shares if you don’t have a Robinhood account. If you’re determined, follow the pre-IPO marketplaces and pay attention to any offerings.
Otherwise, you’ll need to wait for the IPO date to buy shares.
But that’s not necessarily a reason to be disappointed. Google’s shares rose 18% on the day of its IPO. Many people probably sold that day. Had they held for the next decade, their holdings would have been up 1,000%.
When the Robinhood IPO is near, please perform due diligence on the SEC S-1 filing and don’t buy Robinhood stock with money you can’t afford to lose.
Check out this list of the hottest upcoming IPOs for more investment ideas.
Robinhood Stock News Archive
05/25/2021: Robinhood nears its biggest trade of all, an IPO, after wild year
05/20/2021: It’s official. Robinhood IPO access is here. Rolling it out gradually to all customers.
05/18/2021: Robinhood Plans to Reveal Its IPO Filings as Soon as May 24th
05/07/2021: Robinhood’s Big Gamble
05/03/2021: Robinhood raked in $331 million from clients’ trading activity during Q1
04/30/2021: Robinhood deepens ties with JPMorgan by using bank for money transfers
03/30/2021: Robinhood’s Revenue Increased By 514% YoY- $682M In 2020
03/29/2021: Robinhood heads for IPO with a tarnished reputation
03/25/2021: Robinhood aims to allow users to buy into IPOs
03/25/2021: Reports confirming that Robinhood is building IPO access into the platform
03/23/2021: Robinhood Files for IPO Confidentially
03/07/2021: Robinhood chooses the Nasdaq for its IPO, sources say
02/26/2021: Robinhood to Plan Confidential IPO Filing as Soon as March
02/25/2021: Robinhood is still on track for a hot IPO despite the GameStop controversy
02/03/2021: Robinhood moves forward with first Super Bowl ad as brand crisis mounts (video below)
02/02/2021: Sen. Elizabeth Warren asks Robinhood to explain why it restricted GameStop
02/02/2021: Robinhood’s Other Drama: An IPO Firm May Need More Than Ever
02/01/2021: Robinhood raises another $2.4 billion as broker app deals with retail trading frenzy
02/01/2021: Robinhood appears to be benefitting from the trading controversy
02/01/2021: Robinhood CEO explains to Elon Musk why his platform restricted trading last week
01/29/2021: Robinhood restricts crypto trading ‘due to extraordinary market conditions’
01/29/2021: Robinhood raises $1 billion and taps credit lines to make trading of GME available
01/07/2021: Robinhood Weighs Selling Its Shares to Clients in IPO (YES! This website agrees.)
01/28/2021: Class-action lawsuit filed against Robinhood for restricting trading
01/28/2021: Robinhood will allow limited buying of restricted securities Friday, GameStop jumps
01/28/2021: Robinhood, Interactive Brokers restrict trading in GameStop stock and options
12/17/2020: SEC charges Robinhood with misleading customers about how it makes money
12/16/2020: Massachusetts regulators file complaint against Robinhood, alleging manipulation
12/08/2020: NY Post Reports: Trading app Robinhood hires Goldman Sachs to lead IPO
09/03/2020: Robinhood is reportedly under SEC investigation, could pay $10 million fine
08/17/2020: Robinhood Now Valued at $11.2 Billion With New Fund Backing
07/21/2020: Robinhood scraps launch of its investing app in the UK
07/22/2019: Robinhood Raises $323M to Democratize Finance For All
04/11/2019: Ahead of IPO buzz, Robinhood introduces new premium trading features
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