[ad_1]
Pippa Stevens of CNBC.com brings you today’s top business news headlines. On today’s show, CNBC’s Kate Rooney explains why some even stock traders are avoiding the Robinhood IPO. In addition, Nikola founder Trevor Milton is charged with fraud.
Robinhood debuts on public market, closes more than 8% lower at $ 34.82 per share
Robinhood shares closed more than 8% lower on its Nasdaq debut, after hitting a price near the low end of its IPO range.
The online brokerage started trading at $ 38 a share, the low end of its range, valuing the company at around $ 32 billion. After losing up to 10% and ending the session at $ 34.82, Robinhood’s market cap was around $ 29 billion.
Trading for the first time under the symbol HOOD, online brokerage has reached the public markets it seeks to democratize for amateur investors.
Robinhood, whose stock trading app has gained popularity with retail investors, sold shares from its IPO at $ 38 apiece on Wednesday night. Robinhood is valued at 10.5 times forward EBITDA.
Amazon posts third consecutive quarter of $ 100 billion, but still misses expectations
Amazon’s revenue increased 27% year-on-year to $ 113.08 billion. This is a significant slowdown from the second quarter of 2020, when sales climbed 41% year-on-year.
In a call with reporters, Amazon CFO Brian Olsavsky blamed the tough year-to-year comparisons on his business during the Covid-19 lockdowns. In mid-May of last year, Amazon saw its growth rates drop from 35 to 45 percent, he said.
“We’re starting to get past that and that’s why you see some of the growth rate going down,” Olsavsky said, adding that Amazon expects slower growth to continue over the next few quarters.
For the third quarter, Amazon said it expects sales of between $ 106 billion and $ 112 billion, up 10 to 16 percent from the same period last year. That’s well below consensus estimates of $ 119.2 billion.
Nikola founder Trevor Milton pleads not guilty to fraud charges, released on $ 100 million bail
Nikola founder Trevor Milton pleaded not guilty to fraud charges in a Manhattan courtroom Thursday afternoon after federal prosecutors accused him of misleading investors about the capabilities and the technologies of the electric vehicle start-up.
Milton, who resigned as president in September, was released on a $ 100 million bond secured against two of his properties in Utah valued at $ 40 million. He is prohibited from contacting investors and has had travel restrictions imposed by the court. It was his first major appearance since resigning from the company and deleting his social media accounts.
Federal grand jury indicted Milton on three counts of criminal fraud for lying about “almost every aspect of the business” in order to bolster sales of shares in electric vehicle start-up, deed says accusation unsealed Thursday.
[ad_2]
Source link