Robinhood surges 25%, blows past $38 IPO price

Shares of Robinhood soared Tuesday, pushing the newly public stock trading app well above its IPO price of $38 per share last week. Robinhood went public last Thursday on the Nasdaq under the ticker HOOD, hitting the public markets it seeks to democratize. The stock priced at $38 per share, the low end of its offering range. It opened at that price on Thursday but then fell 8% on its first day and had largely traded below that price, until Tuesday. Robinhood’s stock last traded at $47.40 per share, up 25% on Tuesday.

The Menlo Park, California-based company appears to be garnering attention from retail investors on Tuesday, after giving roughly 25% of its IPO shares to its own clients. HOOD is a “top traded stock” on Fidelity, which is generally a good proxy for individual investor interest on a given day.

There have been 5,464 buy orders and 4,503 sell order of Robinhood on Fidelity on Tuesday. The ticker also appears as a top mentioned stock on Reddit’s WallStreetBets, according to Swaggy Stocks, which aggregates the posts.

Bulls love Robinhood for its massive growth, especially during the coronavirus pandemic and GameStop trading mania. Robinhood — which offers equity, cryptocurrency and options trading, as well as cash management accounts — had 18 million clients as of March 2021, up from 7.2 million in 2020, an increase of 151%. The company estimates funded accounts reached 22.5 million in the second quarter.

Robinhood surges 25%, blows past $38 IPO price, CNBC, Aug 4