Is the SpaceX IPO Enough to Rescue Robinhood Stock?
Written by Jennifer Saibil for The Motley Fool -> Robinhood continues to innovate and offer new products for the retail investor. It's still highly reliant on cryptocurrency, and prediction markets is one of its major growth drivers right now. It's also launching more traditio
Robinhood continues to innovate and offer new products for the retail investor.
It's still highly reliant on cryptocurrency, and prediction markets is one of its major growth drivers right now.
It's also launching more traditional products, and it recently got approval to underwrite stocks.
Robinhood Markets (NASDAQ: HOOD) was one of five brokerages chosen to offer Space Exploration Technologies (SpaceX) in its record-shattering initial public offering (IPO) last week. Robinhood stock is 36% off its highs, but it's up more than 6% since the IPO. Can SpaceX breathe new life into Robinhood stock?
Robinhood was the original fee-free trading app, setting a trend for the broader investing community. It's been at the forefront of fintech innovation , helping to level the playing field for retail investors and providing access to different types of instruments that are usually left to institutional investors.
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It's not surprising that it offers IPO access, another area where retail investors have historically been left out while early investors took home gains. And unlike other brokerages that offer IPO access, it doesn't require a minimum balance or net worth.
Offering access to the SpaceX IPO is a natural progression for Robinhood, and it may have onboarded new investors to its platform who were interested in taking part. Having this new cadre of users gives Robinhood the opportunity to convert them into engaged members who adopt other products as well.
