Vlad Tenev, Co-Founder and CEO of Robinhood, will ring the opening bell on July 29, 2021 on Nasdaq.
Source: The Nasdaq
Robinhood stock rose again on Wednesday, bringing the new public stock trading app’s rally to over 85% for the week.
Robinhood’s shares rose 40% on Wednesday to around $ 65.50 per share.
Robinhood stock makes up for its lackluster debut on Nasdaq last week. The stock was priced at $ 38 per share, the lower end of its offering range. It opened at this price on Thursday but then fell 8% on its first day and traded largely below that price until it rose more than 24% on Tuesday.
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It’s unclear what is driving stocks up on Wednesday; However, popular investor Cathie Wood’s attention usually goes to growth stocks.
ARK Invest’s Wood bought 89,622 HOOD shares in the ARK Fintech Innovation ETF on Tuesday, a position valued at approximately $ 4.2 million based on Robinhood’s closing price of $ 46.80. This position complements the approximately 3.15 million shares Wood has bought from Robinhood since the company’s debut last week.
Robinhood is also attracting the attention of retail investors. HOOD is the number one ticker on the WallStreetBets tracker Swaggy Stocks, which shows 700+ mentions on the Reddit chat room.
“Unpopular opinion: Robinhood still has the best mobile interface,” it says in a post with 4,600 interactions.
“It’s a payment for the order flow story with crypto as a kind of kicker,” said Stephanie Link, chief investment strategist at Hightower, on Wednesday to CNBC’s “Squawk Box”. “In the second quarter, total revenue increased five to ten percent from the first quarter. Now if you look at the payment for order flow data, that number actually decreased 23% in the second quarter. That tells me that the payment for the order flow very competitive but the crypto kicker is likely to help Robinhood and they are likely to win stakes. “
“All of that said, it’s super expensive. It’s hard to get your hands on the 11x price-to-sale rating, ”added Link. The online broker Charles Schwab trades 7x.
HOOD was also one of the best-traded stocks on Fidelity on Tuesday.
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