In its first day of trading on the stock market, the shares of online trading broker Robinhood plunged more than 10%.
Robinhood shares opened flat on Thursday valuing the online brokerage at about $28 billion in a grim opening of one of the most anticipated public listings this year.
Shares traded a $34, far lower than the offered price of $38.
The trading app grew in popularity among young investors allowing them to trade crypto and stocks such as GameStop Corp. during the COVID-19 pandemic.
During its stock debut, some IPO investors remained on the sidelines sharing concerns over the risk of a regulatory crack down on Robinhood and even anger still lingering after the broker restrict trading during the meme stock frenzy back in January. This angered users, as well as US regulators.
The meme stock mania drove Robinhood’s revenue March quarter to jump fourfold but also put the app in the eye of the storm and prompted several regulatory probes.
Robinhood was also forced to raise $3.4 billion in emergency funds due to the massive jump in retail trading.
