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Robinhood Gets a Taste of the Frenzy It Fueled, Slumping 8%

Published 05/08/2021, 14:32
ICE
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GME
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AMC
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WKHS
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CLOV
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HOOD
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By Dhirendra Tripathi

Investing.com – Robinhood stock (NASDAQ:HOOD) seemed set for another roller-coaster day in the markets as it plunged 8% in premarket trading Thursday, following a 50% jump a day earlier.

Wednesday was the first day of options trading in the stock, and traders went at it as if there was no tomorrow. Robinhood has now graduated from being a mere trade that most are still figuring out to a meme stock, with extreme volatility that forced several trading halts.

In three sessions between its debut on Thursday and Monday, the stock remained below its issue price of $38. It finally punched through that level on Tuesday and didn’t look back. It touched $85 Wednesday and closed the session with a market cap of $58.82 billion.

By comparison, Intercontinental Exchange (NYSE:ICE), which owns the NYSE, has a market cap of $67.31 billion.

The bug that has covered the likes of AMC (NYSE:AMC), GameStop (NYSE:GME), Workhorse (NASDAQ:WKHS), Clover Health (NASDAQ:CLOV), among others has now touched the Robinhood counter too. Several people can now be seen posting pics of their trades in the stock on social media platforms like Reddit.

The retail trading frenzy that Robinhood helped fuel has the app in its fold now.

 

 

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