Robinhood (HOOD) is trying to secure a role in a potential SpaceX IPO, according to Bloomberg News. More specifically, the trading app is competing with major Wall Street banks in order to obtain a large block of the aerospace company’s shares that it could sell directly to retail investors. Those shares would likely be offered through Robinhood’s IPO Access platform, which allows users to buy stock at the IPO price before it begins trading publicly. Interestingly, SpaceX, led by Elon Musk, is also considering setting aside a meaningful portion of shares specifically for retail investors.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
However, this move has reportedly upset large investment banks, which usually control how IPO shares are distributed to the public. Nevertheless, with about 27 million funded customer accounts, Robinhood has become a major player in the market, and its growing influence matches Musk’s well-known support for retail traders. So far, some expect the IPO could take place around midyear, though the exact timing could still change. In addition, major banks such as Bank of America (BAC), Goldman Sachs (GS), JPMorgan Chase (JPM), and Morgan Stanley (MS) are still expected to play leading roles in the deal.
Importantly, though, the offering itself could be massive, as SpaceX may look to raise as much as $50 billion at a valuation of around $1.5 trillion. This would make it the largest IPO ever. Moreover, SpaceX continues to grow quickly. It leads the industry in rocket launches with Falcon 9, operates the Starlink satellite internet network, and is preparing for future projects such as AI data centers in space and a potential moon base.
Is HOOD a Good Stock to Buy?
Overall, analysts have a Moderate Buy consensus rating on HOOD stock based on 15 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HOOD price target of $154.94 per share implies 50% upside potential.
