Robinhood’s big day proves it’s the first meta–‘meme stock’


Robinhood’s
HOOD,
+50.41%

metaphysical journey from meme inventory launchpad to precise meme inventory is full. It didn’t even take per week.

The no-fee buying and selling app noticed its inventory halted on Wednesday morning after the inventory soared greater than 70% in early buying and selling to $85 a share, greater than 120% increased than its IPO debut price from Thursday. Shares ended the day up 50%, at $70.39, although the inventory was falling greater than 7% in after-hours buying and selling. Wednesday’s meteoric transfer comes on no precise information from the corporate, however in live performance with a large burst of curiosity on social media, the biggest twin indicators {that a} inventory has gone full-meme.

In keeping with knowledge from HypeEquity, which tracks social-media sentiment on particular person ticker symbols, mentions of Robinhood inventory have been up a staggering 23,000% late Tuesday and continued to rise into Wednesday’s session.

These mentions of Robinhood shares have been dominated by key phrases together with “possibility,” and “purchase,” revealing largely bullish sentiment towards the inventory, however “put” was additionally a well-liked key phrase, and a deeper take a look at Reddit boards revealed that many retail buyers who’ve an advanced relationship with the corporate stay skittish about letting their once-loved buying and selling platform be part of the ranks of GameStop
GME,
-3.90%

and AMC Leisure
AMC,
-11.16%

on the Mount Olympus of so-called meme shares.

“Feels good to have truly gotten out with some positive factors this time,” Reddit person  CelestialProphet posted on WallStreetBets. “Good luck to these nonetheless enjoying HOOD.”

Others took a extra sardonic view.

“HOOD can be 120 or 40 [end of day],” predicted person mdubyo. “And I’m right here for it.”

One standard submit on subreddit Superstonk known as for all mentions of Robinhood to be banned, arguing that the surging reputation of the inventory had cluttered a board constructed for GameStop diehards.

Many replies within the thread mulled over the more and more standard principle that Robinhood’s inventory was being utilized by hedge funds as a purposeful distraction from different meme shares in a continued try to cease the quick squeezes that retail buyers stay dedicated to pulling off, even after their January try was stifled partly by Robinhood’s halting trading on certain meme stocks on the top of the squeeze.

“I don’t give a rattling if Vlad’s turd rockets or goes down in flames,” supplied Equal-Park-769, referring to Robinhood co-founder Vlad Tenev.

However amid the warning and animus, Wednesday’s volatility reveals that lots of people on social media are speaking about Robinhood, and a few individuals there are shopping for shares within the firm due to that curiosity, even when there may be nothing new to be stated.

Prefer it or not, Robinhood is now a meta-meme — just ask Cathie Wood.



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