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)

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Editing by Lauren Silva Laughlin and Marjorie Backman

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