Robinhood (NASDAQ:HOOD), recently listed on the Nasdaq, is getting some investor love as shares have jumped dramatically following a tepid initial public offering (IPO).
Robinhood floated its shares on the Nasdaq at $38/share but soon sank below the IPO price. This week, it has been a different story as shares have traded significantly higher at one point more than double its IPO price. Currently, Robinhood is trading at around $65/share with robust volume.
While it was not immediately clear as to why Robinhood is experiencing renewed interest some pundits were speculating that the social trading platform was generating interest from retail investors following the news that Cathie Wood’s Ark Investment purchased a chunk of Robinhood shares post-IPO.
It was previously reported that 301,573 Robinhood account holders participated in the IPO around 1.3% of existing funded accounts. These purchasers were encouraged to hold the shares and not to immediately flip the security after the IPO.
Robinhood has experienced outsized growth, largely from younger investors, due to its no-fee trading platform and social features that encourage activity on its App. Robinhood’s aspirations go beyond trading in traditional securities, as well as crypto, seeking to become a Fintech “super-app” that includes traditional banking services. Robinhood hopes to expand beyond the United States into other markets – somewhat similar to other global Fintechs like Revolut.