Robinhood Markets plunges on its first day of trading on Wall Street

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Robinhood Markets plunges on its first day of trading on Wall Street

Robinhood Markets Inc.'s lackluster welcome for Wall Street didn't last long.

The move came as more than 88 million shares changed hands, larger than the trading volume of Friday and Monday combined.

It marks the first time the company's shares traded well above $38 price at which it went public, except for the first few moments of its trading debut on Thursday before becoming lower and falling back to the same price later that day. It's also the first time it has surpassed the $43 target set when proposed as the upper bound on the IPO price.

Tuesday's rally came with the stock ranking again as the top trade on Fidelity's platform with more than 9,000 buy orders coming from customers. The record closing gave the company a total market value of $39.4 billion. The momentum carried over to postmarket trading, with shares climbing 5.1%.

While many were quick to downplay the stock's reception as individual investors largely shunned buying during its first trading session, it did find some high-profile investors backing their portfolios.

Cathie Wood's flagship ARK Innovation exchange fund holds 4.9 million shares, according to Bloomberg data compiled by Bloomberg. CNBC’s Jim Cramer said Robinhood could make an acquisition similar to Square Inc. s purchase of Afterpay Ltd, which totaled $29 billion in 2005.