- Shares of Robinhood soared as much as 82% on Wednesday, extending its two-day gain to 126%.
- The move higher comes as Robinhood takes the spot as the most mentioned stock on Reddit’s Wall Street Bets forum.
- Robinhood went public at $38 per share last week, and hit a high of $85 on Wednesday.
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Shares of Robinhood surged as much as 82% in Wednesday trades, extending its two-day gain to 126%.
The move higher in Robinhood came after the online trading app stumbled in its post-IPO trades last week, with the stock falling as much as 12% on its first day of trading. Robinhood priced its IPO at $38 per share on Thursday. The stock hit a high of $85 on Wednesday amid numerous trading halts for volatility.
The move higher in Robinhood comes as retail investors talk more about the stock on Reddit’s Wall Street Bets forum. According to data from SwaggyStocks, Robinhood was by far the most mentioned stock on the forum over the past 24 hours, with more than 1,700 mentions. The next most talked about stock was AMD with only 388 mentions on the forum.
A majority of Robinhood’s mentions on the Wall Street Bets forum were positive, according to SwaggyStocks. “Unpopular opinion: Robinhood still has the best mobile interface,” one Reddit user said.
Others were less positive on Robinhood, with one user speculating that the stock “will eventually tank” if payment for order flow is banned by the SEC. Robinhood derives a bulk of its revenue from PFOF practices.
But some investors are not concerned about Robinhood’s source of revenues, including Cathie Wood’s ARK Invest, which has built a more than $250 million stake in the online trading app across three of its ETFs.