Robinhood Shares Slide as SpaceX IPO Role Hangs in Balance
Robinhood shares fell sharply amid reports the trading platform may lose its coveted role in SpaceX's upcoming IPO. The uncertainty threatens its position in what could be the largest public listing in history, surpassing even Saudi Aramco's record offering.
According to Reuters, SpaceX is reevaluating brokerage partners for retail share distribution. Robinhood and SoFi face potential exclusion as Morgan Stanley's E*TRADE emerges as the frontrunner. Notably, Morgan Stanley already leads underwriting for the IPO, which targets a $75 billion raise at a staggering $1.75 trillion valuation.
HOOD stock traded near $65 at publication, down 1.3% on the day. The stock has shed 8% since March 25, pressured by both the potential lost opportunity and broader cryptocurrency market weakness. For retail brokerages, IPO allocations represent a critical revenue stream—Robinhood stood to gain from handling up to 30% of retail demand for the landmark offering.
