This Thursday, a new IPO is coming.
Its revenues are surging. It’s riding many of today’s biggest trends. And in an unusual twist, regular investors like you can actually get shares in it.
Clearly you should invest in it, right?
Wrong.
Today, I’ll explain why — then I’ll tell you what to do instead.
An Exciting Deal
The IPO I’m referring to is for Robinhood, the commission-free app for trading stocks, ETFs, and even cryptos.
Founded in 2013, Robinhood’s mission was to "democratize finance for all.” So its app made stock trading easy and fun.
Thanks to its 17.7 million monthly active users, its Q1 2021 revenue reached $420 million, up more than 4x from the same period last year. Then, last week, it filed for an IPO at a valuation of about $35 billion.
Clearly, Robinhood is riding the wave of some of today’s biggest trends. For example:
- It’s ground zero for the meme-stock frenzy in names like GameStop and AMC.
- It’s part of the “democratization of finance” you read about here at Crowdability — where ordinary citizens are finally getting access to the same investments as the wealthy and well-connected.
- And don’t forget about the explosion taking place in the crypto-currency markets. Robinhood is smack in the middle of it.
Typically, it’s nearly impossible for regular investor to get shares in a hot IPO like this.
But as mentioned earlier, this is an unusual IPO…
You’ve Got Shares… Want ‘Em?
In an unusual twist, Robinhood is planning to sell as much as 35% of this IPO to its customers.
That means, if you’re a customer, you can choose to buy shares of Robinhood at the listing price. So if the stock “pops” at the open, you could score a win.
And given the company’s growth, and the fact that it touches so many important trends, why wouldn’t you invest in it?
The answer is simple…
Too Late to the Party
At $35 billion, it’s already too expensive.
To put that figure in perspective, consider this:
Last year, Schwab bought TD Ameritrade. TD brings in about $4 billion in annual revenues, has $1.3 trillion in Assets under Management, and has been around since 1971.
In other words, TD is a major brokerage. And the acquisition was for just $22 billion — about 50% less than what Robinhood will be valued at.
As with any investment, the key to making profits is to buy low and sell high. But by the time Robinhood goes public, it will be impossible to “buy low.”
You see, early-stage startup investors got there before you…
This Is How You Make 50,000x
When Robinhood first raised funds from startup investors, it was worth about $10 million.
Those investors are now sitting on an estimated gain of 3,500x their money.
That’s enough to turn a $5,000 investment into $17.5 million.
You see, IPOs can deliver huge windfalls…
But the only people pocketing those windfalls are private market investors — in other words, investors who buy shares of these companies when they’re still ground-floor startups.
To explain more about this, let me tell you a quick story…
The Sucker’s Bet
Right when a company called Nutanix was going public in an IPO, a bunch of investors scored shares in it.
These investors thought they were about to hit a jackpot. After all, Nutanix was in a hot sector — cloud computing — and its prospects looked great.
But as it turned out, Nutanix’s IPO was a dud. Its stock went up a measly 2.4%.
Meanwhile, if you’d gotten your shares in Nutanix when it was still a private startup, you actually would have hit the jackpot: you’d have pocketed gains of 532%...
The thing is, this sort of performance-boost from Pre-IPO investing isn’t unusual. I mean, just look what happened with a company called XPO Logistics:
XPO’s stock has done pretty well since its IPO. It’s gone up about 71%. That’s almost a double. Some might consider that a great return — but not me.
Why? Because XPO’s private investors pocketed gains of 6,900%.
71% versus 6,900%. Which one would you choose? It’s a no-brainer.
So — thanks anyway, Robinhood. We’d rather make some real money.
And now you can get your shot to earn returns like this.
You just need to know the real rules of investing…
Rules that involve what I call “Pre-IPO Cheat Codes…”
Our Camera Crew Filmed Everything
For you to understand why these Pre-IPO codes are so powerful, I need to do more than just send you a simple email.
It’s not complicated, but it does require some charts and pictures, as well as some examples of the Pre-IPO cheat codes in action.
And that’s why we hired a camera crew and had them film everything.
And now, for a limited time, you can see the whole story…
It’s called the “Pre-IPO Cheat Code Project.”
Watch the Premiere — No Netflix Needed
In this controversial film, I reveal everything about how these “cheat codes” work…
From what they are and why you’ve never heard of them before…
To how you could use them today to claim shares in some of the world’s hottest private startups.
But I’ll also tell you some stories that’ll make your blood boil…
Like how some of the world’s most well-connected families have been using the codes to enrich themselves at your expense.
Access to the premiere of this film is currently free for all Crowdability readers. But it will only be available for a short time.
To watch it, just click here »
Happy Investing
Best Regards,
Founder
Crowdability.com
