Robinhood shares surge to post-IPO high in turbulent week for trading
Robinhood, the trading platform made famous by the GameStop incident in January 2021, has seen its share price surge after a disappointing initial public offering.
Last week the trading app sold 20 and 25 per cent of shares to its own customer base during a lacklustre IPO which saw the company’s market cap fall by $3bn in the first few minutes of trading. Share prices tumbled from an offering price of $38 per share, closing under $35.
Like a phoenix from the ashes Robinhood’s share price has surged 68% in the past 5 days with post-IPO prices reaching a brief all time high of $85 on Wednesday. In a wild day of trading 30m stocks reportedly traded hands before 10am.
Interest from star stock-picker Cathie Wood and small-time traders is credited with the renewed buzz around the HOOD stocks.
Wood’s company Ark Invest (ARKF), an investment management fund, revealed that it had picked up 89,622 shares on Tuesday after picking up 1.3 million shares during RobinHood’s public debut and an additional 1.85 million shares a day later. Robinhood shares now account for approximately 0.9% of its portfolio.
In the wake of the news HOOD was the top asset mentioned on the wallstreetbets Reddit forum with 72% of comments indicating positive sentiment, according to the stock tracker SwaggyStocks.
Read more: Robinhood shares slide below offer price on Wall Street debut