Robinhood closes 50 percent higher

De tradingapp Robinhood

went up 25 percent on Tuesday to above the IPO price of $ 38, but it completely broke on the Nasdaq on Wednesday. Shortly after the opening, the share climbed by more than 80 percent to a peak of 85 dollars. It then fell back, but still closed more than 50 percent higher than Tuesday at $70.39. Trading was briefly interrupted earlier in the day due to the hefty price swings, but then resumed.

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This time an army of retail investors is helping the price higher. On Tuesday, private investors bought Robinhood shares for $ 19.4 million. This made the trading app, which became extremely popular with young investors during the corona crisis, the sixth most bought share on trading platforms according to data from Vanda Securities.

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Investor guru

The stock’s optimism is due to investor guru Cathie Wood, the publisher of the popular ARK Innovation ETFs. It decided to buy shares of the investment app for its trackers. Wood had already bought 3.15 million shares since the IPO, and 89,622 were added on Tuesday, according to US business channel CNBC. That news fueled the fire further.

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“It looks like retail investors are jumping on the bandwagon,” said John Heagerty, an Atlantic Equities analyst, who has a buy rating and a $65 target for Robinhood. Heagerty is a little concerned about the high volatility. It’s not normal for a stock to move so fast in such a short period of time. That can deter institutional investors.’

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Full screen display

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Hype

The sentiment meter SwaggyStocks proves that there is a hype. He says Robinhood is the most frequently mentioned stock on the WallStreetBets page on the Reddit forum.

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Get on Reddit retail investors together to cheer each other up to buy certain shares. Previously they chased the prices of the ailing game store GameStop

and debt-laden cinema group AMC

already through the roof.

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The busy trading Reddit investors took off at the same time as Robinhood. The latter ensured easy stock trading via a hip app, while Reddit became the social medium on which traders exchanged stock tips.

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