Online brokerage Robinhood might want to feel safe from becoming one of the “meme stocks” as Reddit users have collectively agreed to ignore its IPO.
Robinhood launched a new platform that allows retail investors to buy shares in IPOs earlier this year. Unexpectedly, Robinhood sparked the “meme stock” frenzy led by Reddit users.
Following the “meme stock” frenzy, Robinhood sent out a warning upon its IPO filing. The company told investors that there is a possibility that Robinhood could become the next meme stock. This would further cause volatility in the trading price of its stock.
Reddit users join forces to ignore Robinhood IPO
In contrast to what Robinhood predicted, several posts in Reddit for the recent days show the opposite.
A lot of individual investors have agreed to not buy Robinhood’s IPO. One post from r/Superstonk Reddit reads, “Just ignore the Robinhood IPO entirely,” Reuters quotes. The same post further advised traders to switch to Fidelity‘s trading platform.
Another user also wrote, “Just forget Robinhood altogether. Let them go down in lawsuits and loss of customer base”. The post, according to Reuters have received over 7,000 upvotes on social media.
Other similar posts from discussion n Reddit also received thousands of upvotes. Some threads on social media forums even called fellow users to boycott Robinhood entirely.
Amidst all the talks in Reddit, Robinhood declined to comment on the issue. Ironically, Robinhood has previously shared to have reserved 20% to 35% of its IPO shares for retail investors.
Apparently, Robinhood‘s attempt to handle the frenzy was quite disappointing to some. Glitches and trading restrictions ended up attracting the wrath of many of its users and US lawmakers.
Another Redditor said, “Robinhood has not even been able to keep their app working properly, has not been able to fill orders promptly, has consistently provided incorrect info to users about their trades,” Reuters quotes.
Just last Friday, Robinhood had some trouble with its crypto trading and display issues for about an hour.
Additionally, Robinhood filed for its widely anticipated market flotation, revealing a massive user growth. The company also had to comply with a number of investigations by prosecutors and regulators.
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