Lots of possibilities on the Robinhood IPO on July 29, 2021. In my opinion Robinhood’s competitors will buy large chunks of shares simply to protect themselves.
Robinhood has 22 million users mostly with small balances. The users are also young traders. I see lots of potential since all the users are likely to make money in the future and be able to grow into larger customers for Robinhood . Look at it this way – that’s 22 million customers the other brokerages did not get and to make things worse for Robinhood’s competitors many fees have dropped to $0 – that hurts.
So, if I was a large brokerage with funds available I would buy a huge chunk of Robinhood in hopes of a cheaper takeover cost in the future.
Looks like Robinhood is set to start at $38. Many think this IPO will go up and then go down to less than $38 in the days after opening. I think Robinhood will spike up to about $80 or higher. I think the price will settle above $75.