IPO Access for Retail Investors Coming Soon: Robinhood IPO Update PLUS Breaking News! - YouTube

Channel: Healthy, Wealthy, and Wise

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hey everyone welcome back to the channel as you聽 guys can see i got my hat on which generally means聽聽
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it's in the morning because you guys don't want to聽 see my hair first thing in the morning but um but聽聽
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so good morning got the coffee ready and i just聽 wanted to touch base on a couple of things today聽聽
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because they sort of go together um so one of聽 the things i get a lot of questions on is how can聽聽
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we as retail investors get in on ipos um you know聽 for those ipo shares so and i've shared with many聽聽
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times whether it's been on live streams or in the聽 comments that it's really hard to do that you can聽聽
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theoretically get shares from fidelity you can聽 get them from schwab and tda but the issue is聽聽
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you generally get to have pretty big accounts and聽 they sort of prioritize you know the more money聽聽
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you have the more likelihood you can get an ipo聽 share and i've also told some of you guys about聽聽
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webull who has a relationship with clickipo聽 which is supposed to give some access to ipos聽聽
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um i have not heard that there's been a lot聽 of success there so if you guys are having it聽聽
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definitely let me know in the comments some you聽 know the more information we can all share the聽聽
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more we can all benefit so um you know definitely聽 let me know uh but the reason for today's video is聽聽
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to let you know it's been hard and most of聽 you guys know that it's really hard and i聽聽
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mean unless you have an in with goldman sachs or聽 jpmorgan is some of the the big banks that tend聽聽
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to run the ipos it's really hard to get into for聽 ipo access now what came out yesterday was sort聽聽
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of a blend of something else we've been talking聽 about which is robinhood and we've been talking聽聽
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about a robinhood ipo for a few months now um you聽 finally started to believe it was going to happen聽聽
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even when we had the issue with gamestop you know聽 it seemed like that might put a pause on things聽聽
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but it really hasn't slowed them down in fact聽 if anything they've picked up more users after聽聽
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all of that so anyways we've been talking about聽 robinhood and you know i did that video in january聽聽
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saying i was pretty sure it was coming out the聽 craziness happened then i just did another ipo聽聽
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preview video with about six companies coming聽 out six big companies and you know robinhood聽聽
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was definitely one of them um anyways one of聽 the things we've been talking about since we've聽聽
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been considering with robinhood having an聽 ipo is the fact that they have talked about聽聽
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potentially offering some of their shares聽 of the ipo directly to their users so that聽聽
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is pretty cool because again that's something聽 that you just can't get now this week robin hood聽聽
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did confidentially file for their ipo so again聽 we don't have any details about how many shares聽聽
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they're going to offer in all this so there's聽 a lot to happen but reuters had an article that聽聽
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came out yesterday and i just wanted to share with聽 you for those of you hadn't seen it and as you can聽聽
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see on your screen it says exclusive robinhood聽 aims to allow users to buy into ipos sources聽聽
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so when i saw this i thought okay this is what聽 we expected you know they're going to let people聽聽
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buy into their ipo but it's actually more nuanced聽 than that because it's more into ipos in general聽聽
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so just you know and i will link this article for聽 you guys in the description um but i did highlight聽聽
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a few points here just as we scroll through and聽 so one of the things that's so frustrating for聽聽
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all of us is that so for most of us we know an聽 ipo is priced you know just for the big banks聽聽
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where they can buy it and then the next day it聽 starts to trade where the first opportunity for聽聽
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most of us to be able to buy the shares in many聽 times it can be double right off the bat so we聽聽
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never have a chance to get that that price and聽 so we can see here from the article is that they聽聽
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noted uh data provider dealogic indicated that聽 for 2020 uh which was obviously was a big year聽聽
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for ipos but the average first day trading pop聽 you know on listings in the us was 36 percent so聽聽
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if you bought every ipo out there right off the聽 bat in one day you're making 36 you know if you聽聽
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bought it at the ipo price and then you sold it聽 the next day so it's a very frustrating thing i聽聽
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know that has led a lot of you guys going to spacs聽 um you know and now spacs are sort of having their聽聽
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their rough period right now with a lot of things聽 in the market obviously and then we've also been聽聽
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seeing some direct listings which uh starting聽 back really last year with palatir and hitting聽聽
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it bigger with roblox and we know coinbase聽 is going to have a direct listing as well so
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direct listings in theory are better because聽 it just basically puts all the shares out and聽聽
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everybody can buy but what we're seeing a lot with聽 with the companies having the direct listings is聽聽
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that they're having a private fundraising round聽 before the direct listing so again it's getting聽聽
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more insiders or more people that have access聽 to those because how many of you guys get to聽聽
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private fundraisers not not too many i know i聽 haven't um and so you're still sort of getting聽聽
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shut out in a way they're getting priced you聽 know they're getting the shares at one price um聽聽
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for instance with roblox we know that their most聽 recent private fundraising round with they got the聽聽
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shares were about 45 and while it wasn't like an聽 ipo thing where the shares were gonna be available聽聽
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the next day everybody at that private fundraiser聽 knew that the shares were gonna be up in a direct聽聽
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listing so the company was going public and so聽 the yeah they had to wait a little bit longer聽聽
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but as soon as the first day of trading starts you聽 know the stock is trading into the 60s and 70s so聽聽
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again it's just another frustration for us retail聽 investors well the great thing about this article聽聽
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and with robin hood who again faced a lot of聽 negativity with the whole gamestop issue and i've聽聽
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heard about it we talked a little bit about it on聽 a live stream um you know a lot of you guys in the聽聽
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comments but it really hasn't slowed robin hood聽 down again their numbers of users have picked up聽聽
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and this seems like an opportunity for robinhood聽 to reach out and you know heal some of those old聽聽
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wounds and get back in the good graces so when we聽 go through the article what robinhood has planned聽聽
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to do is again they're going to look at offering聽 shares to some of its 13 million users again no聽聽
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details on how many shares how many people have聽 access with the rules are for that so that's聽聽
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something wrong to wait for but i think the bigger聽 part of this article is that they are developing聽聽
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a technology that they're actually building to聽 administer the party offering that they then聽聽
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plan on using for other companies so that you聽 have the opportunity to get into other ipos so聽聽
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if you didn't want to buy a robinhood ipo okay but聽 then you have the potential by being a robin hood聽聽
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user to participate in other ipos and again that聽 would go a long way i think making robinhood a lot聽聽
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more appealing to people that they you know they聽 got ticked off by them about the whole gamestop聽聽
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issue all right so scrolling down um again you聽 can see here uh this is what we just talked about聽聽
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sometimes i get a little ahead of myself聽 when it comes to these scrolling on the聽聽
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screen um as you can see here a robin hood ipo聽 that's been talked about for a long time and聽聽
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you know and again just really sharing some things聽 earlier this year and again i made that whole case聽聽
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why i really thought robin hood was coming聽 out this year you know 2021 of you know of聽聽
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all these years that's been being predicted and so聽 we finally got a little bit more movement where it聽聽
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says robinhood announced on tuesday that it had聽 filed their confidential paperwork with the sec聽聽
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so we're definitely on the path and again just聽 what you can see here the companies have to聽聽
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disclose details and again once we get the details聽 which is the s1 filing i'll definitely be covering聽聽
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that information with you and then they say聽 this article that the offering could happen聽聽
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in coming weeks and yeah most likely it will and聽 you know there's the period of time where it'll聽聽
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be reviewed by the sec and there'll be adjustments聽 and whatnot um and then the public filing come out聽聽
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you know and this you know you we're probably聽 talking about within a couple of months here聽聽
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so it's coming sooner than later and then聽 they're putting a valuation of about 50聽聽
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billion dollars and we've we've talked numbers聽 close to that on the previous video so again if聽聽
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a lot of this is new to you then you haven't聽 been part of the channel and if you haven't聽聽
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been part of the channel i want to welcome you聽 to join the channel so definitely subscribe聽聽
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um because we've been talking about a lot of聽 this stuff the only thing new here it really is聽聽
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um and i think it's a big point is the fact that聽 robinhood is looking to potentially offer access聽聽
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to other companies ipos and again that would go聽 a long way to sort of level the playing field聽聽
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a little bit because we don't know how much access聽 robinhood will have because again with with these聽聽
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ipos not you know one company doesn't have all the聽 shares they sort of get spread out and so by the聽聽
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time it gets spread out and then you're talking聽 about 13 million users um you know what's the odds聽聽
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that you know you're going to get the the request聽 that you want we don't know we got to see what the聽聽
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details are from their technology and hopefully聽 that will all be available in their s1 filing once聽聽
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it does come out so what do you think guys this聽 is where the comments really come in handy because聽聽
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i really want to know do you feel like this is聽 another step that can try to equal the playing聽聽
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field between you know the institutional investors聽 and retail investors or do you think it's going to聽聽
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be like what's happened direct listings while in聽 theory they definitely seem better but in some聽聽
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ways we're still not getting those early shares i聽 mean they're more established companies so you're聽聽
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not getting in early um you know is this a way聽 for certain companies if you have an ipo that聽聽
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they did not do an extra round of fundraising聽 they're doing it actually at their ipo which is聽聽
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again more traditional is this something that you聽 feel like is another way to help again even that聽聽
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playing field really curious what you guys think聽 so definitely let me know and i hope you like聽聽
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this video and if you did please hit that like聽 button it really helps me and helps the channel聽聽
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you know we continually wanted to we continually聽 want to grow and spread the message and again the聽聽
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more we grow the more i can do here i say that聽 a lot but i really mean it you sometimes you聽聽
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have to justify your time and you know definitely聽 want to justify and the more of you guys that are聽聽
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out there that watch the videos and engage with me聽 and definitely like those videos um you know that聽聽
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just helps me grow on youtube and we know that聽 helps us all grow together so definitely i really聽聽
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need your help there so with that quick friday聽 video i'm gonna let you guys go and get back聽聽
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to my cup of coffee um hope you guys have a great聽 weekend and i'll be talking to you soon take care