Robinhood app transformed the online brokerage industry by introducing convenient and fee-free trading.
Investment in Robinhood was first introduced on our platform in July 2019. Then a single share was $15.2, with the company’s valuation hitting $11.5 billion.
The pandemic took Robinhood through a surge of popularity, leading to a twofold increase in the number of customers. Now the app is used by 23 million people. In April 2021, its stock price on the private market was as high as $65.
Robinhood's financial performance over the past few quarters has been erratic: revenue per user climbed to $137 and then dropped to $64. This is largely due to the craze of meme stock and crypto trading. The tumult in tech stocks also had a negative impact on the dynamic of Robinhood shares.
The company went public in July 2021. The investment closed after the end of the lock-up period and the transfer of shares to our brokerage account. The share price was $13.10 on the first day of trading on February 14. Thus, the investment result excluding fees was -14% for those who invested in July 2019, and -79% for those who invested in Robinhood in April 2021.
According to Robinhood CEO Vlad Tenev, the company is considering new sources of income and will focus more on long-term investments. Robinhood expects the average deposit size to increase as the app's core audience (millennials) matures.
Recently Robinhood launched ACATS, a feature that allows customers to transfer assets from other brokerages into Robinhood. In January 2022, the company launched a public beta for crypto wallets, letting customers deposit and withdraw cryptocurrencies. Robinhood also said it plans to expand into global markets beyond the U.S.
You can invest in Robinhood stock on the UT platform in the Stocks and ETF section.