American financial services firm Robinhood Markets Inc. has filed an application to go public, reinforcing the influence of so-called “meme stocks,” the WSJ reported.
- Robinhood plans to list on Nasdaq, which could bring its valuation at $40 billion, with up to 35% of the offering to be made available only to its customers. The company joins a growing list of firms that have listed in one of the busiest summers in years.
- The firm ended the first quarter with $420 million in transaction-based revenue, accounting for most of its top line. The company benefited from the meme stock frenzy this year, with 5.5 million sign-ups with the surge in GameStop, AMC Entertainment, and Dogecoin.
- To entice investors, Robinhood will have to address concerns with the Financial Industry Regulatory Authority regarding its platform. It earlier agreed to pay some $70 million in fines.
Users were allocated some 2% in the maiden offering of Clear Secure Inc. and are set to get an allocation when Duolingo Inc. goes public.
GMT is up 0.84%, AMC is down 1.46%, and YOU is up 0.81% premarket; while DOGE is down 4.72%.