Robinhood extends 2-day gain to 126%, Thanks to Reddit’s Wall Street Bets forum
In Wednesday trading, Robinhood stock rose as much as 82 percent, bringing its two-day gain to 126 percent.
The price rose after the online trading programme struggled in its post-IPO trades last week, with the shares plunging as much as 12% on its first day of trading. On Thursday, Robinhood priced its initial public offering at $38 per share. On Wednesday, the stock scaled high on $85 despite repeated trading halts due to volatility.
The stock’s rise comes as more individual investors discuss the stock on Reddit’s Wall Street Bets forum. With over 1,700 mentions in the last 24 hours, according to data from SwaggyStocks, Robinhood was by far the most talked stock on the forum. With only 388 mentions on the forum, AMD was the next most talked about stock.
According to SwaggyStocks, the majority of Robinhood’s mentions on the Wall Street Bets forum were positive. One Reddit member stated, “Unpopular opinion: Robinhood still has the best mobile Interface.”
Others were less enthusiastic about Robinhood, with one user predicting that the company “would eventually tank” if the SEC prohibits paying for order flow. PFOF practises account for the majority of Robinhood’s revenue.
However, some investors, such as Cathie Wood’s ARK Invest, which has a $250 million position in Robinhood through three of its ETFs, are unconcerned about the online trading app’s revenue source.