SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Robinhood Markets, Inc. - HOOD - Yahoo Finance
NEW YORK, Dec. 29, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Robinhood Markets, Inc. ("Robinhood" or the "Company") (NASDAQ: HOOD). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Robinhood and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or around July 30, 2021, Robinhood conducted its initial public offering ("IPO"), offering 55 million shares of common stock to the public at a price of $38.00 per share. Then, on October 26, 2021, Robinhood reported its third quarter 2021 financial results, revealing that its total net revenue for the period between July 1, 2021 and September 30, 2021—the same period during which the Company conducted it IPO—came in at $365 million, missing analyst estimates by nearly $73 million. Robinhood also reported declines in its monthly active users ("MAUs"), funded accounts, assets under custody, and average revenue per user. Robinhood also disclosed that third-quarter transaction-based revenue from cryptocurrency trading, which in the lead up to the IPO had been the bulk of the Company's revenues, was only $51 million, well below the $233 million that Robinhood earned from cryptocurrency trading in the second quarter. Robinhood's net losses also skyrocketed from $11 million to $1.32 billion due to a $1.24 billion stock-based compensation that was tied to the stock's post-IPO performance, the initial rally in which had triggered a massive payout to Chief Executive Officer and President Vladimir Tenev and Chief Creative Officer Baiju Bhatt. Robinhood also guided for "less than $1.8 billion" in revenue for the full year, implying a maximum 85% growth, which fell well short of analyst expectations of 111%. On this news, Robinhood's stock price fell $4.13 per share, or nearly 10.5%, to close at $35.44 per share on October 27, 2021.
source: https://finance.yahoo.com/news/shareholder-alert-pomerantz-law-firm-033600914.html
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