A Robinhood spokesperson declined to comment.
Eventually, Robinhood will be required to release those numbers so investors can evaluate the company’s growth trajectory and key risks. It will be at least several months before the S-1 filing is made public, one of the sources told CNN Business.
GameStop saga set off cash crunch
Robinhood was forced to rapidly draw down its credit lines and swiftly raise $3.4 billion, underscoring the apparent liquidity crisis facing the startup.
The episode raised questions about Robinhood’s business model and management team and tested the brand’s loyalty among users.
Under normal times, Robinhood’s stumbles might doom an IPO, raising questions about whether the company is ready for the limelight. But these aren’t normal times.
Rock-bottom interest rates, combined with a surging interest from retail investors and optimism about the economic recovery, have set off a boom in financial markets. US stocks are trading near record highs, valuations are lofty and signs of market froth abound.
US-listed traditional IPOs have raised $34.9 billion so far in 2021, nearly five times what they raised through the same period last year, according to Dealogic stats as of March 19. That’s the highest for this point of any year since 1995.
Over the past six months major companies including Coupang, Bumble, Snowflake, Airbnb and DoorDash all have skyrocketed in their first day of trading.
The average first-day pop for US-listed IPOs is 44%, the highest since the dotcom bubble in 2000, according to Dealogic.
A key question for investors scrutinizing Robinhood’s books will be how its explosive user growth was impacted — if at all — by the GameStop saga.
Despite the controversy, January was a near record month for Robinhood app downloads, according to a late January report by JMP Securities.
This is a developing story.