Reddit Investors May Shun Robinhood IPO In Wake Of Meme Stock Frenzy

“Just ignore the Robinhood IPO entirely,” said a post on the r/Superstonk subreddit, according to U.S. News. That subreddit has also advised traders to transfer out to Fidelity’s trading platform.

As retail investors were piling onto stocks like GameStop, AMC and others, which had been deemed losers by big hedge funds, Robinhood took the action of stopping activity on those stocks, in what it said was a way to make sure the markets remained stable. There were also several reports of glitches during the whole affair.

This had incurred the anger of many online traders, who now want to retaliate against the company as it goes public itself.

The U.S. News report says there have sometimes been thousands of upvotes and discussions on Reddit threads regarding the matter.

Another recent post expressed a wish for Robinhood to “go down in lawsuits and loss of customer base,” and a third critiqued the company for its supposed inability to keep things working properly and for reportedly giving users inaccurate information regarding their trades. And the U.S. News report notes that Robinhood was recently down last Friday (July 2).

The company’s IPO filing also noted for investors that the stock itself could become a “meme stock” too.

PYMNTS notes that there’s been a trend in the recent IPOs for FinTechs, in which there’s been massive double-digit performance growth alongside red ink on operating and net income lines.

Robinhood was a different story, though, as the report says it was 245 percent revenue growth from the previous year. It also logged $7 million net income from a net loss of $107 million, and its adjusted EBITDA was at $155 million compared to a negative $74 million from the previous year.