Last week Robinhood made one of the hotly anticipated public debuts of 2021. But the corporate’s IPO was something however an excellent one. By the tip of its first day of buying and selling, Robindood stock (HOOD) completed 8.37% under its IPO price. This fall made it one of many uncommon tech IPOs to shut down on its opening day.
Whereas Robinhood executives, traders, and workers might have been hanging their heads that day, some merchants liked that HOOD shares had a dreadful IPO. I’m speaking in regards to the meme stock merchants that frequent communities like WallStreetBets on Reddit. A few of these retail traders (versus main institutional traders) are nonetheless holding grudges in opposition to Robinhood for the restrictions the corporate positioned on shopping for GameStop shares earlier within the 12 months. Different meme stock merchants are indignant at Robinhood for less than making about 20% of its shares obtainable to retail traders, which means massive establishments had a greater alternative of getting in on day considered one of buying and selling.
And by all accounts, it regarded just like the meme stock merchants received the battle. With many withholding shopping for the stock—and a few actively shorting the stock—HOOD shares sank over 8% on IPO day. But it’s Robinhood who could also be having the last snort now.
Yesterday HOOD shares surged a whopping 24.2% to $46.80 per share—effectively above last week’s $38 IPO price. And right this moment HOOD shares are already surging in pre-market buying and selling—they’re up one other 16% to $54.34 as of the time of this writing.
So what does this imply for the way forward for Robinhood shares? Nobody has a crystal ball, however what will be mentioned for certain is meme merchants staying away from the stock or shorting it last week made the flawed guess. Six days after its disappointing IPO, Robinhood is clearly out on high once more.