3 Minutes to Read Reuters, 7 July – Robinhood Markets Inc, the online stockbroker that aided the “meme stock” craze earlier this year and later drew criticism for its handling of the trading frenzy, is experiencing backlash on social media forums over its first public offering. Many individual investors are planning to avoid the stock market debut, according to conversations in online forums on Reddit. Several posts in recent days advising people not to purchase into the IPO have gotten hundreds of upvotes. A user on the r/Superstonk subreddit recommended traders to shift out to Fidelity’s trading platform, saying, “Just disregard the Robinhood IPO totally.” Robinhood, which has reserved retail investors’ shares in the IPO, declined to comment. Following this year’s trading craze in so-called meme stocks like GameStop, the business came under examination. Many of its users and US lawmakers were enraged by its handling of the frenzy, which was hampered by faults and followed by trading restrictions. Since then, some discussions on social media platforms have advocated for a complete boycott of the website. “Let’s just forget about Robinhood. Allow them to become embroiled in legal battles and lose their consumer base “Another recent post with over 7,000 upvotes says the same thing. “Robinhood hasn’t even been able to keep its app operating properly, hasn’t been able to fill orders quickly, and has regularly provided false information to users about their trades,” another Redditor claimed. For roughly an hour late on Friday, Robinhood’s platform had crypto trading and display difficulties. Last week, Robinhood filed for its much-anticipated stock market debut, revealing huge user growth as well as a slew of prosecutors’ and regulators’ probes. The trading app operator created a new platform earlier this year to allow individual investors to purchase shares in initial public offerings (IPOs). Robinhood is reserving 20% to 35% of its IPO shares for these types of investors. The company also warned investors in its IPO filing that it may become a meme stock, claiming that high involvement from regular investors could cause volatility in the stock’s trading price. (Medha Singh contributed reporting from Bengaluru, and Anirban Sen and Sriraj Kalluvila edited the piece.)/n
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