Robinhood's public offering was priced at $38 per share, which is the lowest price in its IPO range. At that price, the company was valued at around $32 billion.However, the shares fell sharply after the U.S. consumer trading and investing app allowed investors to trade their shares. The stock plunged more than 10% within the first hour of its existence as a floating stock. Robinhood was able to recover some of its losses in later trading but ended the day at $34.82 per share. This is an 8.37% decrease, according to Yahoo Finance.Gross proceeds of $2.1B were generated by the sale of 55,000,000 shares. However, this figure could rise if underwriting banks buy more options. The company is well-capitalized and can now chart its own future.Why did the stock fall? You might be shocked that Robinhood did not close the day up 80% or something similar, given the fervent furor surrounding many large-brand, consumer-facing tech businesses in the past year. DoorDash and Airbnb both made huge debuts.A few things might be in play if you think out loud:Robinhood made a large portion of its IPO accessible to its users. Robinhood offered its traders and investors shares at the same level and price as big investors. This helped to curb retail demand. It's a great idea. Robinhood could have reduced unsold retail interest in its shares by doing this, thereby reshaping the early supply/demand curve.Perhaps the warnings from the company that trading volumes may decline in Q2 2021 scared some bulls.Robinhood's downward debut in the meme-stock era is still a puzzler. We will continue to examine investor sentiment about the company's future performance as it finds its feet.More information on the company's debut will be available, including notes from an interview conducted with the CFO of the company about the IPO. This interview is coming tomorrow morning on Extra Crunch.
