What do you think would be the fate of Robinhood IPO?
"Revenue was $420 million in the first three months of the year, a greater-than-fourfold jump from $96 million a year earlier. It lost $1.4 billion during that period, far wider than a loss of $53 million a year ago. The company attributed the loss to $3.5 billion in debt that it raised in February." Without the emergency raise they were up 2.1B in first quarter. Hockey stick growth. There's no way this IPO doesn't go insanely well.
Since when does a loan used for business purposes subtract dollar for dollar from net profit? They likely haven’t even paid a penny of loan interest, an actual expense that would subtract from net profit. That loss is an actual loss that has nothing to do with the funding round.
@HomeStreet, yes, @Lyft statement is incorrect but your assertion is also wrong. There were no loans involved, RH issued convertible notes for 3.5B dollars to raise capital during GME saga. These notes will convert to stock at IPO with a discount of 30% (so ~5B worth of stock). The discount is written as a loss, but there are no interests involved.
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The fact that exposure to Doge is listed as a specific risk factor in the prospectus....hell no
The funny thing is that S1 describes only Q1 of 2021 which ended on March 31. The price of Doge was $0.05 and the total volume of trading was measly 774M. Then Doge peaked at 0.74 in May (Q2) with volume reaching 28B. Yesterday Doge was 0.25 with volume of 2.4B. Their Q2 earning call will be crazy good. Info is taken from today's Money Stuff by Matt Levine on Bloomberg: https://www.bloomberg.com/opinion/articles/2021-07-02/robinhood-ipo-filing-is-a-lesson-in-meme-finance