Gamestop – Robinhood Employees Ready, Willing, Eager, Allowed To Dump Their Shares Onto The Next Sucker At Earliest Opportunity
Now that Robinhood has squared away one of countless and almost certainly growing legal and regulatory issues it faces, it simply cannot wait to sell you, the avid Robinhood user, some shares in itself. And you know who else can’t wait? Robinhood’s employees.
When Robinhood shares start trading at the end of this month, employees will be able to sell 15% of their holdings immediately, rather than after the traditional six-month lockup period, according to a regulatory filing. Three months later, they can sell another 15%.
And you can understand why they might be so eager.
Robinhood is seen as particularly subject to volatility, according to traders and bankers. The stock-trading app soared in popularity during the pandemic as amateur investors bought up shares of so-called meme stocks on its platform, helping send GameStop Corp., AMC Entertainment Holdings Inc. and others rocketing skyward.
Or, you know, the opposite.
[AMC Entertainment] stock tumbled 15% to $33.43 apiece on Wednesday, less than half of its all-time high of $72.62 in early June. The decline brought its month-to-date losses to 41%. GameStop, the original meme stock king, has fallen more than 21% this month, while newcomers Clover Health and Clean Energy Fuels have plunged 34.8% and 22.6% in July, respectively.
Robinhood, Others Upend Rules for Early IPO Trading [WSJ]
AMC share price gets cut in half as reality sets in for meme stock investors [CNBC]
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