Robinhood shot to new highs on Tuesday in a stark contrast to its public debut last week. The investing platform’s stock soared by 18% in mid-session. Shares raised the IPO price by $44 a piece, trading well above the current average of their previous value of $28.
Investors are monitoring Robinhood's future prospects after Tuesday, following the public debut and placement of the stock on Thursday.
The stock dropped as much as 12% below its IPO price during its first day of trading on Nasdaq, even when the Nasdaq is still trading. Shares closed down 8% that day. Some questions were raised about whether the lackluster performance had anything to do with Robinhood's hybrid auction style debut, a lack of lock-up period for 15% 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 stock over the past year-and-a-half. In an unusual move, the company has announced about 35% of its shares to retail investors for its IPO.
Robinhood's ETF scooped up about 4.9 million shares of Cathie Wood's Ark Innovation ETF on Friday and Thursday of last week, according to Bloomberg data.
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