![]() Robinhood completely disrupted the online brokerage industry by pioneering zero-commission trading. “It seems rich - unless the company can keep up this high growth,” said Kathleen Smith, a principal at Renaissance Capital, which manages the Renaissance IPO ETF (SCHW), a rival that is expanding at a slower pace. That compares a multiple of just five for Charles Schwab “There is more hanging in the balance in terms of a successful novel IPO than a couple hundred million dollars in the bank for the company.”īut investors are paying a premium for that growth.Īt the high end of Robinhood’s IPO range, the deal would have valued the company at about 22 times trailing revenue, according to Renaissance Capital. “Robinhood is playing it safe here,” Le said in an email. Robert Le, analyst at PitchBook, said Robinhood appears to be leaving some money on the table in an effort to get a first-day pop in its share price. Robinhood’s revenue surged by 245% last year to $959 million as its user growth and trading volume exploded. They’ve got a great platform they can build off of,” said David Weild, former vice chairman of the Nasdaq who is now the CEO of investment bank Weild & Co. ![]() Robinhood reveals new regulatory probes on the eve of its blockbuster IPO Kimberly White/Getty Images for Robinhood Vlad Tenev, CEO and Co-Founder, Robinhood in his office on Jin Menlo Park, California.
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