Robinhood showed signs of sluggishness on the first day of its entry into the NASDAQ market, with stock prices falling by more than 8%.
According to the Associated Press on the 29th (local time), Robinhood’s stock price plunged 8.4% on the first day of its listing on the Nasdaq compared to $38.
Market capitalization was $29 billion.
Robinhood, a stock trading app, grew sharply last year, with sales soaring 245% year-on-year. Since its establishment in 2013, it has secured 22.5 million transaction accounts with free fees. More than half of customers are novice investors.
But Robinhood has also come under a lot of criticism, the Associated Press said. Critics point out that Robinhood is encouraging trading too often and that regulatory investigations are likely to continue.
Some users are still angry at Robinhood’s restriction on buying GameStop shares earlier this year. Concerns over the subdued personal investment were also one of the reasons for the decline, the Associated Press said.
Robinhood, which has “financial democratization” at the forefront, allocated a considerable amount of public stocks to individual investors who use apps instead of large institutions in the IPO.
