Robinhood, a stock trading app that has seen a surge in popularity among retail investors and shares sold in its IPO at $38 per share, valuing it at around $32 billion.Robinhood listed shares at the lowest end of the $38-$42 range ahead of Thursday's Nasdaq debut. The company will trade under the ticker symbol HOOD and has sold close to 2 billion shares. Vlad Tenev and Baiju Bhatt, co-founders of the company, each sold approximately $50 million in stock.Robinhood is a gateway to the market for first-time and young investors. The app offers options, equity, and cryptocurrency trading as well as cash management accounts. It saw record trading during the pandemic as well as the meme stock craze in early 2021.Robinhood claims it currently has 22.5million funded accounts, which are bank accounts tied to them. This is an increase of 151% over the 18 million that Robinhood had in the first quarter 2021. In September, the company was valued at $11.7 billion.JPMorgan Chase and Goldman Sachs are the leading investment banks in the deal. The deal will allow underwriters to purchase an additional 5.5 Million shares.Robinhood's updated prospectus estimates second quarter revenue at $546 million to $574million, an increase of $244 million from the second quarter 2020. From $128 million last year, revenue grew 309% to $522million in the first quarter.Robinhood, however, expects to lose $487 million to $537million in the second quarter. This is despite turning a profit last quarter.Robinhood received $331 million as payment for order flow, money that brokerage firms receive to direct clients' trades to the market makers. Regulators in 2021 have been scrutinizing payments for order flow.Options trading accounts are responsible for 38% of the revenue, while equities or crypto account for 25% and 17% respectively. Robinhood said that there could be a slowdown of trading revenue and account growth due to the cooling retail trading boom.Fidelity and Charles Schwab are competitors to Robinhood, as well as Interactive Brokers, Interactive Brokers, and newer services such Webull and SoFi. Charles Schwab's market capitalization is $130 billion, and Interactive Brokers' market valuation is $26 billion.DST Global, Index Ventures and NEA are just a few of the largest investors in Robinhood.WATCH: Short selling is more harmful than beneficial for the U.S. economy
