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Shares of California-based American financial services company Robinhood Markets Inc (NASDAQ:HOOD) have rallied 100% in the current week, as the stock surged by a whopping 50.41% overnight in Wall Street.
During the day, the trading of the company’s shares was halted multiple times, over concerns of volatility. The volatile stock saw 104.6 million shares changing hands on Wednesday, as it surpassed its own IPO debut volume of 102.5 million shares.
The stock closed at US$70.39 per share, up 50.4%. During the intraday trade, shares of Robinhood touched an intraday-high of US$85, an 81% gain from Tuesday’s close. This is the second consecutive day of massive gains for the company’s shares. On Tuesday, the company’s shares closed US$46.80 per share – up 24.2%.
The two days of gains have translated into a weekly gain of 100.2% till now. With this rally, the valuation of the company now stands at US$58.82 billion – its highest level.
Robinhood, which seeks to democratise the markets, went public last Thursday on the NASDAQ under the ticker HOOD. The stock was priced at US$38 per share on listing – at the lower end of its offering range. However, after opening at that price a week back, it had a dismal day at the market – falling 8% on its first day and was largely trading below that price, until Tuesday.
The company gave roughly a quarter of its IPO shares to its own clients – a thing that caught the attention of many retail investors.
Robinhood has been hogging the limelight throughout this year as it is being seen as a major gateway for meme stocks.
Speculative activity has ballooned this year as intra-day traders in online chatrooms, like Reddit, managed to create massive short squeezes in names like GameStop Inc (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC), which inflicted huge pain and losses for short sellers and stirred volatility in the overall market.
