If this is ahead of schedule it makes me wonder if they're dumping risk from the recent GME et al fiasco onto the public market - or they're fast tracking it because they need more billions to cover unexpected costs due to GME et al?
Probably, you wouldn’t intentionally IPO immediately after a PR disaster unless you had too.
I really really hope the SEC makes them disclose all the gory details of their “payment for order flow” stuff. I mean, basically, smart people who write about it (Levine, patio11), say it’s harmless/helpful. But I don’t think it sits right with anyone. Certainly not with me .
Or, more accurately, the extreme volatility of GME led to increased collateral requirements that Robinhood couldn't meet. (It was like billions of dollars, iirc.) Or, otherwise, it's not that Robinhood was undercapitalized (or even is undercapitalized!)—just that the goalposts moved suddenly and unexpectedly.
PFOF is still a little squirrel-y. Ditto on Levine and others, and tied up in all that T+2 settlement issue, too.
An exit is an exit, a liquidity event is a liquidity event.
De-risking means being able to support your lifestyle no matter what happens, so this does that regardless of whatever quantum states of adversity could lurk behind the scenes.