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