Shares of Robinhood Jumped on Wednesday to $70.39 Per Share
Shares of a Menlo Park-based company soared again on Wednesday, extending a wild rally in the newly public stock trading app’s stock. The stock gained 50.4% to close at $70.39 per share. Shares of Robinhood even touched $85 at one point, an 81% gain from Tuesday’s close.
Its stock is making up for its bittersweet debut on the Nasdaq last week. Robinhood’s stock opened Thursday at $38 per share, the low end of its offering range, nevertheless, then fell 8% on its first day and largely traded below that price until Tuesday, when it gained more than 24%
The stock surpassed its IPO debut of 102.5 million shares, trading over 104.6 million shares on Wednesday.
Robinhood and its results
It is hard to identify one factor which helped to boost the stock on Wednesday. But one day earlier ARK Invest’s Cathie Wood bought 89,622 shares of HOOD in ARK Fintech Innovation ETF, a position worth roughly $4.2 million based on the company’s closing price of $46.80. The position added to the around 3.15 million shares Wood bought of Robinhood. ARK Invest’s Cathie Wood bought millions of shares since Robinbood’s debut last week. People should keep in mind that, attention from the popular investor typically benefits growth stocks.
The company is also gathering attention from retail investors it serves. In 2021, speculative activity exploded as day traders in online chatrooms managed to create massive short squeezes. For instance, they create massive short squeezes in names like GameStop and AMC Entertainment, which inflicted huge pain for short sellers and jolted volatility in the overall market. Robinhood is regarded as a main gateway to the so-called meme stocks.
Unsurprisingly, HOOD is the number one ticker on WallStreetBets tracker Swaggy stocks. Users mentioned Robinhood more than 700 times. It was also the top traded stock in Fidelity on Wednesday morning.
Vlad Tenev has nothing against individual investors who invest in Reddit names. The CEO of Robinhood stated that the phenomenon gives embattled companies access to the capital they otherwise wouldn’t have. Customers love these companies, and they are willing to invest in them. Meme stocks also get resources that allow them to find really good management teams. Robinhood helped to attract a lot of new, younger traders to the stock market during the coronavirus pandemic. That surge continued in 2021, marked by frenetic trading around meme stocks.
