The Robinhood IPO threatens Reddit’s retail sale on Reddit

By the hand of Medha Singh

(Reuters) – Online brokerage Robinhood Markets Inc, which helped make the meme stock hobby possible this year and then attracted flak for managing its trading mania, is backtracking on social media forums against the initial public offering.

Many individual investors plan to rule out their stock market debut, and in recent days have received thousands of votes for various messages urging users not to buy on the IPO, according to discussions on Reddit’s online forums.

“Simply ignore the Robinhood IPO,” says a message about the r / Superston subpreditation, which also advises traders to transfer to Fidelity’s trading platform.

Robinhood, which has reserved shares in the IPO for retail investors, declined to comment.

The company was explored after this year’s fondness for trading meme stocks like GameStop (NYSE :). The treatment of rage, mixed with problems and continued trade restrictions, attracted the anger of many users and lawmakers in the US.

Since then, some threads on social media forums have asked users to completely boycott the platform.

“Just forget about Robinhood. Let’s leave it at litigation and lose the customer base,” another recent post said with more than 7,000 positive votes.

Another Redditor said: “Robinhood has not been able to keep its app running properly, it has not been able to fulfill orders immediately, it has constantly given users misinformation about their professions.”

Robinhood had cryptocurrency trading and display issues on its platform an hour later on Friday.

Last week, Robinhood called for a wide float in its market, revealing massive growth in users, marking a number of investigations by prosecutors and regulators.

Earlier this year, the commercial application operator launched a new platform to offer retail investors the opportunity to buy shares in IPOs. Robinhood holds 20% to 35% of its IPO shares for these investors.

In presenting the IPO, the company warned investors that it could become a meme stock, and said a large stake in retail investors could lead to volatility in the stock price of its shares.