3 Robinhood Sympathy Trades To Watch

Retail broker Robinhood went public last week and opened down on its first day of trading.

Robinhood Markets Inc HOOD priced shares at $38 and was valued at $32 billion in its initial price offering. The company had 31 million users according to recent reports.

After getting the attention of the Reddit crowd, shares are up 37% to $64.41 at the time of writing. The stock surged to a high of $85 earlier in the session.

Here is a look at three possible sympathy trades.

eToro: Social investment network eToro is going public via SPAC merger with FinTech Acquisition Corp V FTCV. The merger based on a $10 share price values the company at $10.4 billion. The company offers commission-free fractional trades and crypto trading.

One of the big growth items for Robinhood has been its cryptocurrency assets. eToro added Bitcoin BTC/USD trading in 2013 and has also seen strong growth for crypto trading.

At the time of the merger announcement, eToro had over 20 million registered users.

FTCV shares are up 6% Wednesday.

Coinbase Global: Cryptocurrency exchange Coinbase Global COIN was one of the highly anticipated public offerings of 2021. The company had 43 million verified users as of December 31, 2020.

The company supports 90 cryptocurrency assets for trading or custody ownership and had trading volume of $38 billion in 2020.

Coinbase revenue of $1.3 billion in fiscal 2020 was up from the $533.7 million reported in fiscal 2019. Revenue in the first quarter was $1.8 billion for Coinbase, surpassing all of fiscal 2020. The company also announced the addition of Dogecoin DOGE/USD trading earlier this year, which could help its next quarter’s trading volume and revenue.

Coinbase shares are up 1% Wednesday.

Related Link: Here's Why You Can't Sell Your Robinhood IPO Shares On The Platform Yet

SoFi: Personal finance company SoFi Technologies Inc SOFI offers services like personal loans, student loans, home loans and refinancing. The company also offers stock trading and has recently been promoting its trading platform through commercials and social media.

SoFi was valued at $8.65 billion at the time of its SPAC merger. SoFi had 1.8 million customers in 2020 and sees its customer base hitting over 3 million users in 2021. Fiscal 2020 revenue was estimated at $621 million.

SoFi forecasts fiscal 2021 revenue hitting $980 million. The company will report quarterly earnings on August 12.

SoFi shares are up 6% Wednesday.

Disclosure: The author is long shares SOFI.