Robinhood shares soar 80% in a day after disastrous NASDAQ debut
Robinhood's HOOD campaign was a new memorial on NASDAQ that caught the attention of Reddit members. During the day, the shares added 80% in value, because of which the NASDAQ was forced to suspend trading three times.
Robinhood's recent release on the NASDAQ was considered a failure in the cryptocurrency community. By the end of the first trading day, the company's share price managed to reach an anti-record among debuts on the stock exchange, trading below the placement price. In addition, according to Bloomberg, the company showed the worst start among 51 American firms that managed to raise an amount in an IPO similar to that which Robinhood managed to raise.
Robinhood shares dropped 8.4% on July 29 and closed at $34.82 from a starting price of $38. The maximum decline in shares reached 12.2%, and capitalization at the end of the first day of trading fell to $29 billion, while the company received an IPO valuation of $31.8 billion.
Since the opening of trading today, HOOD shares have begun to add quickly in value, gaining more than 81.60%. Their cost at some point exceeded $85. At the same time, on the eve of their price was no more than $47.
Robinhood's shares started gaining ground this Tuesday when they gained 24%. The reason was, among others, Reddit members. Some of them have sincerely believed in stocks, watching investments in them from Katie Wood, the head of one of the fastest-growing investment firms ARK Invest.
Before Robinhood's IPO, ARK Fintech Innovation bought more than $1.29 million shares worth over $45 million, then “raised the stakes” on July 30, increasing its “holdings” by $1.85 million shares, and then acquired another 89,622 shares. August 3, having accumulated about 5 million securities or 0.9% of the portfolio.
As a result of Wood's actions, the number of mentions of Robinhood on the r WallStreetBets subreddit rose to 1,700, which is noticeably higher even against the background of “top” AMD shares, mentioned in more than 388 posts.
As for the stopping of trading, the first fell at the moment when the price of HOOD shares soared by 20% in 10 minutes, after which the trading was “paused” for about half an hour, and then it was stopped twice more due to the next jumps. As a result, by 18:00 Moscow time, the cost of HOOD dropped to $61.2, which is still almost 31% higher than the indicators at the close of the previous days. If we talk about the price of shares since their appearance on the NASDAQ, then their total growth amounted to more than 120%.
Such a rise in quotations could not but affect the capitalization of the company. As a result, Robinhood's $29 billion figure rose to a cosmic $65 billion. In parallel with this, the volume of retail trade on August 3 alone increased 10 times, and in the first half-hour of trading on August 4, deals were made with 62 million shares, which exceeds the figures for the previous days by more than 7 times.