Goldman Sachs has reportedly been hired as the underwriter to lead the Robinhood IPO. Robinhood has successfully penetrated the retail investing market displayed by its site receiving more traffic than any of the traditional retail brokerages. In both 1Q21 and 2Q21 the site was the only one in the competitive set to receive over 200 million visits.
To give you a con, Robinhood recently agreed to fork over $70 million in penalties and compensation to harmed investors based on a settlement with industry self-regulator FINRA that said the investing app distributed false and misleading information to its customers, allowed too many people to engage in risky trading and didn’t properly oversee the technology that supported its app, among other issues. All in all, I believe it will do good.