Robinhood is the latest meme stock on Wall Street

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Robinhood is the latest meme stock on Wall Street

Robinhood shares were higher on Friday after a wild week for the stock. Shares of the trading platform are on pace to end the week up more than 60% after massive gains on Tuesday and Wednesday. Yesterday shares tanked 27% after news that some stockholders would be cashing out up to 97.8 million shares. Those sales are on hold until clearance by the Security Exchange Commission is received. That will likely happen once the companies reports second quarter results on 18 August.

Robinhood appears to be the newest meme stock on Wall Street, highlighting the power of retail investors. It was one of the most cited stocks on SwaggyStocks' WallStreetBets in Reddit on Tuesday and Wednesday, according to Reddit. The stock comment volume spiked over a two day span.

Shares were halted for volatility in the first few minutes of trading session on Wednesday. The stock soared more than 80% at one point. The upward move comes a day after stock spiked 24%. On Tuesday the stock price blew past the IPO price of $38 in stark contrast to its public debut last week.

On Wednesday Fidelity's real-time order data showed Robinhood as a top traded stock, behind Advanced Micro Devices and AMC two stocks followed by WSB members.

While a short squeeze has initially driven up meme stocks in the past, Robinhood's move is not driven by a short covering. Until HOOD stock loan availability increases and the overall amount of HOOD shares shorted becomes relevant buying and selling by long shareholders is the reason behind HOOD's price moves, Ihor Dusaniwsky from S 3 Partners told Yahoo Finance.

High profile investments in Robinhood may also be helping fuel the recent rally. Last week, Robinhood shares cap drove about 4.9 million shares of Cathie Wood's Ark Innovation ETF, according to Bloomberg data.

The recent movements are a stark contrast compared to the market's public debut on Thursday.The stock touched as much as 12% below its IPO price during its first day of trading in Nasdaq. Shares closed down 8% in the same day. Some questioned whether its lackluster performance had anything to do with Robinhood's hybrid auction-style debut, a lack of lock-up period for 15% of shares held by employees and others, or concerns over regulatory headwinds.

GameStop has been a key player in the retail trading boom involving Robinhood and other stocks for the past year and a half. In an unusual move, the company raised about 35% of its shares to retail investors for its IPO.