So did you guys know that since 1980, up into 2016 that within the first six months, the average growth for a stock, that ipos is only six percent, but on the first day it tends to grow at an average rate of 18? So what the heck is going on? What's going on team, it's ricky with tech, but solutions and robin hood ipo today, ticker, symbol, h-o-o-d and i'm sure a lot of you guys probably saw this conversation on the stock twits platform. People were hyping the heck out of it, and i want to get into the details asking that magical question. Is it time to invest in robin hood right now? So one of the first things that i want to cover is robinhood is ipoint during when overall markets are at all-time highs, uh, they went public at an average purchase price of 38 dollars a share and based off of the current price point that i'm looking at It right now it's a little bit under 35 dollars, a share which is equivalent to being down eight percent. So, while you're watching this video, let me know in the comments section where the current price point of robinhood currently sits at.

But the thing that i want to talk about is the intention behind the ipo. One of the first things that was shared is that robinhood's initial intention, when going public, was to raise 2 billion dollars selling over 55 million shares, which right away, is just to be able to lock in some capital to be able to reinvest into this company. But one of the things that i began to read up on is a lot of popular investors that are very reputable, such as warren buffett and people like michael, bury right from the big short suggested investors to be very careful of robin hood's ipo and one of The things that you have to take into consideration is that year over year, robin hood is absolutely killing it and i'm sure a question everyone has is: how is it that robin hood makes money being a free trading platform? Well, one of the things that they've shared is that, through their order, flow they've been very, very profitable. I believe in the first quarter they reported a little bit over 300 million dollars in revenue, but take this into consideration.

This is also following 2020 pandemic conditions, and you might be like. Is that a good thing, or is that a bad thing? But looking a little bit closer into robin hood's active users? Year over year, robin hood went from 8 million active users from 2020 up to nearly 18 million active users as of 2021, and the really cool thing about this is that they've done exceptionally well. They're producing a lot of revenue within a very short period of time. But is this the peak and i think that's the concern that a lot of investors have is: how is it that robin hood as a trading platform? Can it continue this growth and that's a question that you should be asking yourself as well, going long or potentially wanting to invest into robinhood, but let's go ahead and talk about the technical.

So i want to share with you my plan on how i intend to trade, the robin hood ipo, to keep it very simple: i'm not the biggest fan of ipos, because i view them to be very over hyped up and what i mean by that is, while Everyone is taking into consideration that this stock is only going to continue to go up based off of hope. More often than not just based off of previous ipos, we tend to see a lot of activity within the first day, but shortly after its true valuation tends to come to light, and a great example of this is ticker symbol coin, which is the ipo or the Actual publicly traded stock now of coinbase, you guys saw that this was a very hyped up stock, but when it originally ipo'd it was at a very overbought price of 429 within the first date at its current price point. As of right now it sits at 235. So what i did was i took a position on the robinhood ipo, but i only did it with a dollar amount in which i can tolerate, meaning that, while everyone's hoping that this ipo continues to rally realistically understanding the intention of the ipo and robin hood, wanting To raise 2 billion and selling 55 million shares, it was very easy for me to understand that a pullback was bound to happen so as it began to pull on back, i decided to take a small position on robin hood and as of right now, my average Purchase price sits a little bit under 36 a share, and i have a total of 400 shares.

I want to share with you this the reason: why is that's about thirteen thousand dollars? I normally, when i'm taking a full position into something trade with about a hundred thousand dollars, so this is about thirteen percent of what i normally trade with. So if you trade with a thousand dollars this, is you taking a position in robinhood of about 130, and why would someone do that? Well, the coin base is a perfect example, although it might be very hyped up on the first day, just like many other ipos. What i like to anticipate is worst case scenario and take risk management into consideration. I want to have some skin in the game with robin hood at this price point, but i also want to make sure that i don't buy in so heavy that if it begins to pull on back, i become an emotional mess.

I want to partake in the action because robinhood has reported amazing earnings, but i also need to be very realistic and until proven otherwise, and giving it time to show its true valuation in publicly traded markets. I don't want to get ahead of myself, which is why i took a much lighter position being a little bit over 10 invested. So let me know in the comments section what you guys think about my breakdown and how i plan to approach the robinhood ipo. Like you guys know, i like to take a more conservative approach when it comes down to investing in these very hyped up stocks.

I do want some skin in the game, but i need to be very realistic and take risk management into consideration, which is why i took a lighter position to anticipate and potentially tolerate a pullback if it does end up happening sharing that with you. If robinhood actually begins to indicate signs of an uptrend and breaks above that 40 price point trading above its ipo price, then i would be more confident to put more money behind that trade when that opportunity presents itself. But until then i'm very happy with my light position. I really do appreciate you guys time.

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