By Dhirendra Tripathi
Investing.com – Robinhood stock (NASDAQ:HOOD) was up 6% Monday as the latest meme stock catches fancy of more retail traders even as brokerages struggle with giving a target for the app.
The company had listed on the Nasdaq on July 29 after offering its shares in the $38 to $42 range. The shares were issued at the lower end and debuted at the same price before falling.
They didn’t trade above the issue price until August 3, when the Reddit gang took over, more than doubling the stock from $38. On August 4, it rose to a record high of $84.12.
Extreme volatility in the stock forced three halts in trading last week. It continues to rule the counter as the stock now trades 30% lower from its last week’s high, accounting for the session’s rise so far.
The online brokerage sold as much as 25% of its IPO shares to 301,573 of its retail customers, representing about 1.3% of the platform’s 22.5 million funded accounts.
The bug that has struck the likes of AMC (NYSE:AMC), GameStop (NYSE:GME), Workhorse (NASDAQ:WKHS), Clover Health (NASDAQ:CLOV) in a battle of small traders pitched against the Wall Street giants has now engulfed Robinhood, too. Several people can now be seen posting pics of their trades in the stock on social media platforms like Reddit and Twitter.
Cathie Wood’s ARK Invest also now owns the stock.