Robinhood users’ diamond hands

The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly

NEW YORK, Aug 19 (Reuters Breakingviews) - Robinhood Markets (HOOD.O) on Wednesday released its first earnings report since it went public last month read more . It showed customers of the roughly $40 billion trading app swinging toward trendy cryptocurrency in the second quarter after so-called meme stocks fueled an equity-trading frenzy in the first three months of the year.

Old market hands may be surprised by one nugget revealed by boss Vlad Tenev during a call with investors. As well as its own, Robinhood has given customers a way to buy into read more six other recent initial public offerings – all oversubscribed by five times or more, according to Tenev. For the two IPOs that took place last quarter, some 80% of shares originally bought by Robinhood’s customers were still held by them a month later. As he noted, that’s contrary to the stereotype of retail punters as hype-driven, short-term flippers.

The meme-stock spirit wasn’t far away though: Tenev called his IPO-buying customers “diamond-handed,” a social-media term for someone who holds a position despite high risk. He knows whose trades are paying his bills. (By Richard Beales)

On Twitter

Capital Calls - More concise insights on global finance:Amazon steps closer to modern Sears read more

GlobalFoundries IPO would give Arm a leg up read more

Sea’s high tides have a mild drag read more

Walmart plays both ends of the trade read more

Evergrande’s key man risk strikes at worst time read more

Editing by Lauren Silva Laughlin and Marjorie Backman

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.