Robinhood shares tumbled in early trading Thursday as the online brokerage made its debut as a public company. Shares of HOOD opened at the offering price of $38, edged up briefly before falling sliding in midday trades. The stock was last down more than 11%.
Stephen Diamond, a law professor at Santa Clara University and a corporate governance expert, noted the delay in Robinhood's opening trade which he said could be "a sign of some chaos in finding a stable equilibrium. It may mean sell orders are outstripping buy orders, putting pressure downward," he told Protocol.
The company had priced its offering at $38 late Wednesday, the low end of its $38-$42 IPO range.