The Resurgence of Meme Stock Frenzy: eToro Contemplates Seizing the Opportunity for an IPO
During the COVID-19 pandemic in 2021, retail investors caused a stock market frenzy by heavily buying GameStop, resulting in an epic squeeze of Wall Street hedge funds. This event also brought fame to the American brokerage firm Robinhood.
Robinhood took advantage of the trading frenzy and went public in New York, providing an opportunity for retail investors to participate in its IPO. The social media platform Reddit also allowed some users to invest in the IPO and has filed an IPO application with the SEC in February. However, eToro is still unsure whether to follow suit and allow customers to directly invest in its IPO.
