Robinhood said it expects the trading craze, particularly in crypto, that propelled it to new highs in 2021 to fade, as it eyes a valuation of up to $35 billion, according to the company's updated IPO filing.
The online brokerage said it plans to sell shares at a price range of $38 to $42, which translates to a valuation of $32 billion to $35 billion, the company said. That's lower than the $40 billion valuation the online brokerage was reportedly seeking.
Robinhood also warned that the trading craze it saw in the first part of the year which saw "new users joining our platform, driven by general market interest trading" may not last. The company said it expects revenue for its September quarter to be lower than its June quarter, when the company saw a spike in retail investing, especially in cryptocurrencies. The expected decline is the "result of decreased levels of trading" particularly in cryptocurrencies, the company said.
Correction: This story's headline was updated to correct Robinhood's desired valuation. This story was updated July 20, 2021.