Robinhood sparks buzz on Reddit, shares up 15% By Reuters

© Reuters. FILE PHOTO: The emblem of Robinhood Markets, Inc. is seen at a pop-up occasion on Wall Avenue after the corporate’s IPO in New York Metropolis, U.S., July 29, 2021. REUTERS/Andrew Kelly

(Reuters) -Shares of Robinhood Markets Inc (NASDAQ:) jumped greater than 15% in premarket buying and selling on Wednesday as curiosity from star fund supervisor Cathie Wooden and small-time merchants arrange the inventory for a fourth session of positive aspects after its underwhelming IPO final week.

The 24% surge in Robinhood’s inventory on Tuesday elevated it above the $38-price set in final Thursday’s IPO and gave the corporate a market capitalization of about $39 billion.

Its inventory was final up 14.9% at $53.5 on Wednesday, and the second-most traded throughout U.S. exchanges in buying and selling earlier than the bell.

“Individuals are attempting to leap on the again of Cathie Wooden’s vote of confidence in Robinhood shares,” stated Thomas Hayes, managing member at Nice Hill Capital in New York.

“The catalyst was actually Cathie Wooden placing in a large place after everybody was downbeat after the IPO.”

Wooden’s Ark Fintech Innovation ETF purchased one other 89,622 shares of Robinhood on Tuesday, and the inventory now quantities to about 0.9% of its portfolio, in response to a abstract of the fund’s day by day buying and selling.

Total, Wooden’s flagship ARK Innovation ETF has amassed almost 5 million Robinhood shares, value about $229 million.

Robinhood shares additionally noticed a surge in curiosity from small-time traders, with retail buying and selling quantity rising tenfold on Tuesday, in response to Vanda (NASDAQ:) Analysis.

It was probably the most talked about inventory on WallStreetBets, the Reddit platform on the heart of this 12 months’s “meme inventory” rally, over the previous 24 hours, in response to sentiment tracker SwaggyStocks.

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