Robinhood (NASDAQ:HOOD) shares are jumping in early trading on Wednesday, setting the newly public stock trading app up to extend its 24% rally from the previous session.
Stock in the financial services company is making up for its lackluster debut on the NASDAQ last week. The stock priced at $38 per share, the low end of its offering range. It opened at that price on Thursday but then fell 8% on its first day and had largely traded below that price, until Tuesday when it rallied more than 24%.
Experts say it is unclear exactly what is driving the stock higher on Wednesday; however, attention from popular investor Cathie Wood typically benefits growth stocks.
ARK Invest’s Wood purchased 89,622 shares of HOOD on Tuesday in ARK Fintech Innovation ETF, a position worth roughly $4.2 million based on Robinhood’s closing price of $46.80. This position adds to the approximately 3.15 million shares Wood has bought of Robinhood since the company’s debut last week.
Robinhood is also garnering attention from retail investors. HOOD is the number one ticker on WallStreetBets tracker Swaggy Stocks, which indicates more than 700 mentions on the Reddit chat room.
Said one expert, "In their second quarter, total revenues grew 5% to 10% flow data, that number actually fell 23% in the second quarter. So, it tells me payment for order flow is very competitive but the crypto kicker is probably helping Robinhood and they’re probably gaining share."
HOOD shares popped $25.32, or 54.1%, to $72.12.
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