It was supposed to be a triumph for today’s memeified markets – a validation for all those amateurs who took on the Wall Street pros.
Instead, the public debut for Robinhood Markets turned out to be an embarrassment for the company that’s become synonymous with the rise of individual investors.
Robinhood traders, it turned out, had no time for Robinhood.
In fact, some of the very people who flocked to the firm’s free-trading app to buy meme stocks, like GameStop and AMC Entertainment Holdings, this year appeared to take glee Thursday as the company’s share price slid.
Reddit’s WallStreetBets forum, a hotbed of retail traders, lit up. One top post: “Is it me or does anyone else get pleasure from watching Robinhood’s stock burn to the ground?”
Almost nothing seemed to go right for Robinhood, whose decision to briefly freeze trading at the height of the meme-stock frenzy in January drew scorn from its own customers. The stock was priced late Wednesday at the low end of its expected range. Then investors saw red instead of green: shares almost immediately dropped after trading opened, tumbling as much as 12 per cent.
Robinhood eventually pared the worst of the decline, falling 8.4 per cent to close at $34.82. Still, it ranked as the worst debut on record among US firms that raised at least as much cash as it did. The near-immediate flop raises fresh doubts about the company’s fraught path to its initial public offering, which was full of fits and starts as it raced to seize an exuberant stock market moment before it passed.
It’s also a potential warning sign about Robinhood’s relationship with its own users. It sought to share the spotlight with them - upon logging in on Thursday, customers received a special thank you message from the firm in honor of its IPO, with a virtual bell they could ring by shaking their iPhones. Instead, they failed to rally around the company at its biggest moment yet. Some turned their backs entirely to its mission to “democratise finance”.
“With the whole GameStop and AMC stuff, I’m guessing the CEO said he needed to step his game up but it’s too late for that,” Julian Barrios, a 26-year-old mechanic from Fort Lauderdale, Florida, said. “I won’t be buying any Robinhood shares - they don’t deserve my money.”
A spokesman for Robinhood declined to comment beyond the company’s public statements.
In the days leading up to the IPO, Robinhood’s leadership put on a confident public face. The company took the unusual step of holding a live-streamed roadshow, during which the group fielded a range of questions. Chief executive Vlad Tenev smiled as he was asked which planet was his favorite.
Even on Thursday, inside Nasdaq’s headquarters, Robinhood’s team stood atop a bright green carpet rolled out for the occasion. The co-founders, Mr Tenev and Baiju Bhatt, had their families and co-workers beside them, exchanging hugs and shaking hands between photo-ops. Robinhood bought three hours of advertising in New York’s Times Square, with billboards lit up in green with white lettering which read: “Welcome to the new Wall Street”.
Yet on old Wall Street, bankers were growing increasingly sceptical that Robinhood had enough fuel to go “to the moon” like GameStop and AMC.
Underwriters signalled during the roadshow they wanted to be conservative with pricing, people familiar with the matter said on Thursday morning. They didn’t have as much visibility as usual into how the shares would trade at the open because of the large retail allocation of 20 per cent to 25 per cent, the people added.
Robinhood’s IPO also came after an 18-month run of record issuance. Not long after Robinhood priced at the bottom of its range, car battery maker Clarios International postponed its own IPO, citing “market conditions”.
Still, Robinhood’s underwriters pushed forward. First, they hinted they wouldn’t raise the range of $38 to $42. Then, they indicated the shares would price at the bottom half of that range.
By the time Thursday came around, bankers were simply trying to not have Robinhood break its $38 IPO price on the first day. They failed: the stock sank almost immediately.
Of course, a weak IPO won’t necessarily torpedo a firm’s long-term prospects. Technology issues on Nasdaq kept Facebook shares from opening on time when it debuted in 2012, in an IPO that was widely viewed as a flop. That did little to stop the company from rocketing to a market value of more than $1 trillion today.
Robinhood’s rocky start is also a letdown for some of the venture capitalists who invested early in the company, according to people familiar with the matter. Although most of them will still make a tidy profit, expectations for its market value had been much higher than what the current stock price indicates, the people said. In secondary markets, some trades reached $55 per share in recent months, partly because of an expectation that Robinhood would be valued similarly to Coinbase, which has a market capitalisation of about $50 billion.
Menlo Park, Calfornia-based Robinhood had sought to go public for months. When it burst onto the public stage in March 2020, amid an emboldened wave of retail trading, it started laying the foundations for an offering. One crucial step was enlisting Dan Gallagher, a former US Securities and Exchange Commissioner, as its chief legal officer.
He swept in to streamline the company’s compliance - before his arrival, the legal team tended to accept it was overtaxed and had shortcomings, according to a person familiar with the matter. Mr Gallagher told employees he didn’t want compliance problems to stand in the way of Robinhood’s IPO timeline.
The company charged ahead: Christina Lai came in to lead Robinhood’s corporate legal group and work on its public-readiness push. The firm rapidly added to the team working on the IPO in the first four months since Mr Gallagher’s arrival, the person added. He was paid a package totaling about $30 million, according to filings.
Robinhood’s IPO produced an even bigger windfall for Mr Tenev and Mr Bhatt. At Thursday’s closing price, Mr Tenev’s net worth is $2.2 billion, according to the Bloomberg Billionaires Index. Mr Bhatt, who shared the CEO duties until last year and is now the company’s chief creative officer, is worth $2.5 billion.
The Robinhood of legend robbed from the rich and gave to the poor. The now-public company, for a day at least, left the users who bought its IPO worse off.
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
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%3Cul%3E%0A%3Cli%3EFatigue%3C%2Fli%3E%0A%3Cli%3Enumbness%20and%20tingling%3C%2Fli%3E%0A%3Cli%3ELoss%20of%20balance%20and%20dizziness%3C%2Fli%3E%0A%3Cli%3EStiffness%20or%20spasms%3C%2Fli%3E%0A%3Cli%3ETremor%3C%2Fli%3E%0A%3Cli%3EPain%3C%2Fli%3E%0A%3Cli%3EBladder%20problems%3C%2Fli%3E%0A%3Cli%3EBowel%20trouble%3C%2Fli%3E%0A%3Cli%3EVision%20problems%3C%2Fli%3E%0A%3Cli%3EProblems%20with%20memory%20and%20thinking%3C%2Fli%3E%0A%3C%2Ful%3E%0A
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
Squads
Pakistan: Sarfaraz Ahmed (c), Babar Azam (vc), Abid Ali, Asif Ali, Fakhar Zaman, Haris Sohail, Mohammad Hasnain, Iftikhar Ahmed, Imad Wasim, Mohammad Amir, Mohammad Nawaz, Mohammad Rizwan, Shadab Khan, Usman Shinwari, Wahab Riaz
Sri Lanka: Lahiru Thirimanne (c), Danushka Gunathilaka, Sadeera Samarawickrama, Avishka Fernando, Oshada Fernando, Shehan Jayasuriya, Dasun Shanaka, Minod Bhanuka, Angelo Perera, Wanindu Hasaranga, Lakshan Sandakan, Nuwan Pradeep, Isuru Udana, Kasun Rajitha, Lahiru Kumara
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Ten10 Cricket League
Venue and schedule Sharjah Cricket Stadium, December 14 to 17
Teams
Maratha Arabians Leading player: Virender Sehwag; Top picks: Mohammed Amir, Imad Wasim; UAE players: Shaiman Anwar, Zahoor Khan
Bengal Lions Leading player: Sarfraz Ahmed; Top picks: Sunil Narine, Mustafizur Rahman; UAE players: Mohammed Naveed, Rameez Shahzad
Kerala Kings Leading player: Eoin Morgan; Top picks: Kieron Pollard, Sohail Tanvir; UAE players: Rohan Mustafa, Imran Haider
Pakhtoons Leading player: Shahid Afridi; Top picks: Fakhar Zaman, Tamim Iqbal; UAE players: Amjad Javed, Saqlain Haider
Punjabi Legends Leading player: Shoaib Malik; Top picks: Hasan Ali, Chris Jordan; UAE players: Ghulam Shabber, Shareef Asadullah
Team Sri Lanka Cricket Will be made up of Colombo players who won island’s domestic limited-overs competition
Our legal advisor
Rasmi Ragy is a senior counsel at Charles Russell Speechlys, a law firm headquartered in London with offices in Europe, the Middle East and Hong Kong.
Experience: Prosecutor in Egypt with more than 40 years experience across the GCC.
Education: Ain Shams University, Egypt, in 1978.
Packages which the US Secret Service said contained possible explosive devices were sent to:
- Former first lady Hillary Clinton
- Former US president Barack Obama
- Philanthropist and businessman George Soros
- Former CIA director John Brennan at CNN's New York bureau
- Former Attorney General Eric Holder (delivered to former DNC chair Debbie Wasserman Schultz)
- California Congresswoman Maxine Waters (two devices)
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
Killing of Qassem Suleimani
Gulf Men's League final
Dubai Hurricanes 24-12 Abu Dhabi Harlequins
Scoreline:
Cardiff City 0
Liverpool 2
Wijnaldum 57', Milner 81' (pen)
Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Fire and Fury
By Michael Wolff,
Henry Holt
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
More from Neighbourhood Watch:
AUSTRALIA SQUAD v SOUTH AFRICA
Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Results
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Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
SPEC SHEET
Display: 6.8" edge quad-HD dynamic Amoled 2X, Infinity-O, 3088 x 1440, 500ppi, HDR10 , 120Hz
Processor: 4nm Snapdragon 8 Gen 1/Exynos 2200, 8-core
Memory: 8/12GB RAM
Storage: 128/256/512GB/1TB
Platform: Android 12
Main camera: quad 12MP ultra-wide f/2.2, 108MP wide f/1.8, 10MP telephoto f/4.9, 10MP telephoto 2.4; Space Zoom up to 100x, auto HDR, expert RAW
Video: 8K@24fps, 4K@60fps, full-HD@60fps, HD@30fps, super slo-mo@960fps
Front camera: 40MP f/2.2
Battery: 5000mAh, fast wireless charging 2.0 Wireless PowerShare
Connectivity: 5G, Wi-Fi, Bluetooth 5.2, NFC
I/O: USB-C
SIM: single nano, or nano and SIM, nano and nano, eSIM/nano and nano
Colours: burgundy, green, phantom black, phantom white, graphite, sky blue, red
Price: Dh4,699 for 128GB, Dh5,099 for 256GB, Dh5,499 for 512GB; 1TB unavailable in the UAE
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
