Robinhood's woes continue: its co-founders are no longer billionaires, and their stock price has fallen 60 percent since its IPO.

Text/Sergei Klebnikov

Image source: Visual China

Synopsis:

According to Forbes' calculations, Robinhood co-founders Vlad Tenev and Baiju Bhatt are no longer billionaires as shares of their wildly popular stock-trading app have continued to fall in recent months, having fallen in half since the company went public last year.

Key facts:

By 2022, Robinhood's stock price has fallen nearly 20 percent to below $14 per share, continuing to show a downward trend as the company continues to struggle.

Since going public last year, Robinhood's stock price has fallen by more than half, more than 60 percent from its July 2021 IPO price of $38 per share.

Forbes estimates that falling stock prices mean co-founders Vlad Tenev and Baiju Bhatt are no longer billionaires.

Based on Robinhood's closing price of $13.89 per share on Wednesday, Tenev and Bhatt are now worth $845 million and $911 million, respectively, compared to their peak net worth of $4.3 billion and $4.9 billion in August 2021.

When Forbes contacted Robinhood, it declined to comment on the news.

SEC documents show that Tenev and Bhatt still have an incentive-laden restricted stock incentive program that could earn them billions of dollars in the coming years if the company's stock price reaches certain milestones.

Key Background:

In July 2021, Robinhood went public at a high-profile valuation of $32 billion. While Robinhood shares closed 8 percent lower on their first day than their $38 offering, its public offering made both founders a fortune, both of whom were worth more than $2 billion. According to Forbes' calculations, the two became billionaires for the first time in September 2020 after a private funding round valued Robinhood at $11.7 billion.

Large number:

$22.4 million. This is the total number of user accounts on the Robinhood platform.

It is worth noting:

Robinhood will announce fourth-quarter earnings and full-year results on January 27. The company hopes it will perform better than last quarter. Last quarter, the company's shares fell 10 percent as third-quarter earnings fell significantly less than expected. In its most recent earnings report, Robinhood's revenue fell to $365 million from $565 million in the second quarter, in large part due to a sharp decline in cryptocurrency trading revenue on the Robinhood platform. Robinhood's trading activity started off to a hit in 2021, with a wild rally in meme stocks like GameStop and cryptocurrencies like Dogecoin driving Robinhood's substantial growth, but the company's trading activity has largely stabilized. The company warned in October that the decline in retail trading activity was "likely to continue" and adversely affected fourth-quarter earnings.

Translated by Stephen