99.50 -2.24 (-2.20%)
After hours: 7:59PM EST
|Bid||99.05 x 1000|
|Ask||99.72 x 1100|
|Day's range||86.00 - 142.90|
|52-week range||2.57 - 483.00|
|Beta (5Y monthly)||-1.95|
|PE ratio (TTM)||N/A|
|Earnings date||24 Mar 2021 - 29 Mar 2021|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||14 Mar 2019|
|1y target est||13.44|
(Bloomberg) -- Robinhood Markets Inc., the trading platform behind the boom-and-bust swing in GameStop Corp.’s shares, plans to file confidentially for an initial public offering as soon as March, according to people familiar with the matter.The company has held talks in the past week with underwriters about moving forward with a filing within weeks, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and the timing could change, the people said.A representative for Robinhood, based in Menlo Park, California, declined to comment.Robinhood exploded in popularity during the pandemic as homebound young people turned to its trading app to make money and pass the time. The company, which has been targeting a 2021 IPO since at least last year, faced a cash crunch when it ran into regulatory trouble three weeks ago.Robinhood had to draw down its credit lines and raise $3.4 billion from its backers to post more collateral with the Depository Trust & Clearing Corp., the industry’s clearinghouse. The DTCC wanted members to post more cash to ensure they could clear trades, given wild swings in stocks including video game retailer GameStop and movie theater chain AMC Entertainment Holdings Inc.Robinhood is also facing political and customer backlash because it temporarily curbed trading in GameStop and other stocks.Robinhood was valued at $11.7 billion in a funding round last year. That company has been considering selling some of its shares in its IPO directly to its own users, Bloomberg News reported. Such a move would be striking because retail investors usually don’t get to buy into new listings at the offering price. Instead, they typically have to invest on the first day of trading in a rush that can drive up the stock price.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- GameStop Corp. shares had their best week this month, and second-best ever, amid a flurry of day trader activity.The video-game retailer jumped 151% this week as amateur investors continued to promote the stock on social media platforms like Reddit and StockTwits. More than 90 million shares changed hands Friday, more than double what’s been seen in the past two weeks, and adding to the 233 million that traded over the past two sessions.“It would be unwise to discount the power of the collective retail trade and this is an example of the resurgence of energy either on GME again or through another stock,” said Amy Kong, chief investment officer of Barrett Asset Management.The stock has been a poster child for volatility so far this year. Euphoria for the video-game retailer set off a 2,728% rally last month before shares came crashing down and wiped out about $30 billion in market value. The retail craze drew ire from Washington and led to a House Financial Services Committee hearing on retail trading and the video-game distributor last week.Options traders were betting that the stock could do much better Friday after more than doubling so far this week. The most-active option traded on the stock Thursday was a contract on GameStop spiking to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%. The stock swung between gains and losses Friday before finally settling down 6.4% to $101.74.“From a top-down perspective, I would caution that these price spikes continue to signal frothiness in certain corners of the market and represent sharp deviations from company fundamentals,” Kong said.Analysts cited a tweet by activist investor and GameStop board member Ryan Cohen posted shortly before the stock began its resurgence on Wednesday, suggesting Reddit traders may view the photo of a McDonald’s Corp. ice cream as a cryptic message to resume buying. A report from Citron Research suggesting the company purchase Esports Entertainment Group Inc. to pivot away from its declining retail business provided a further catalyst.Even with the volatility on Friday, shares remain about seven-times higher than the average analyst price target of about $13, according to data compiled by Bloomberg. None of the eight analysts who follow the stock rate it a buy -- it has four hold-equivalents and four sell recommendations.While the stock’s revival caught many on Wall Street flat-footed this week, the craze is “nothing like what we saw in late January,” according to Eric Liu, the co-founder of Vanda Research. “Part of that is due to a broadening of the opportunity set” with retail traders flowing into cannabis and crypto-exposed companies, he said in an email.(Updates share price moves throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Short bets are a tough sell.The Reddit-inspired short squeeze in GameStop Corp. and other stocks has spurred billions of dollars in losses for short sellers in recent weeks, prompting a rethink of the practice among some investors. Last Friday, Ken Griffin of hedge-fund Citadel declared after Congressional hearings the turmoil will diminish short selling for the foreseeable future.But the environment for short selling was already among the worst in decades even before the GameStop blowup. Even with this week’s sharp selloff, broad gains in equities in the past year have made it difficult to bet against almost any one stock.The most-shorted stocks have gained 112% since last March while the least-shorted names rose 40%, according to a Scotiabank analysis. In January, when GameStop gyrations gripped markets, a record was reached between the most- and least-expensive stocks to borrow with the most expensive outperforming the least by 29%, according to IHS Markit.“I think it would be fair to characterize the time from the late-March 2020 until now as being the worst period on record for short interest factors,” said Sam Pierson, director of Securities Finance at IHS Markit.It’s not unusual for the most-shorted stocks to outperform gains in the least-shorted companies when coming out of a bear market. But what is surprising this time is the extent of the current outperformance and the pain it has caused, even before the start of 2021, Scotiabank analyst Jean-Michel Gauthier said.“Typically when you see the high-profile shorts throw in the towel, it is a good time to be hunting. But in this environment it still seems too early,” said Adam Eagleston, chief investment officer of Formidable Asset Management, which manages over $600 million in assets.To be sure, short selling positions haven’t completely disappeared.Small caps are one example of where short bets by hedge funds have widened, according to net contracts data last week from the Commodity Futures Trading Commission. But short interest as a percentage of float for the Russell 3000 has continued to plunge, according to financial analytics firm S3 Partners.Russell 3000 short interest stands at 5.6%, which is the lowest in at least two years as funds continue to trim their positions. That’s down from at least a two-year high of 7.5% a month ago.Read more: Hedge Funds Reverse Course to Go Short Small Caps: Taking StockFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.