Shares of Robinhood (NASDAQ:HOOD) popped again Friday as the volatile stock heads to end its first full week of trading up about 60%.
Robinhood shares rose 10% to $56.39 on Friday after whipsawing this week. The newly public trading app had a meme-stock moment followed by a surprising share sale announcement.
On Friday, Robinhood reiterated it is not selling any stock, after Thursday’s news that existing shareholders will sell up to 97.9 million shares over time. That news knocked the stock down by 27% on Thursday.
"Robinhood is not itself selling any additional securities but filed the Resale S-1 on behalf of certain of its shareholders pursuant to a pre-existing contractual obligation," Robinhood said.
The stock trading app also clarified Friday morning that these sales would not start right away, easing concerns about an immediate jump in stock supply that could weigh down the shares. Robinhood said these sales can’t start until SEC approval for the transaction, which shouldn’t occur until after Robinhood’s second quarter earnings on Aug. 18.
The rise and fall of Robinhood marked a stark contrast to the free-commission brokerage’s lackluster debut on the NASDAQ last week.
"Robinhood is not itself selling any additional securities but filed the Resale S-1 on behalf of certain of its shareholders pursuant to a pre-existing contractual obligation," Robinhood said.
The stock trading app also clarified Friday morning that these sales would not start right away, easing concerns about an immediate jump in stock supply that could weigh down the shares. Robinhood said these sales can’t start until SEC approval for the transaction, which shouldn’t occur until after Robinhood’s second quarter earnings on Aug. 18.
The shares took off Friday in premarket trading after the Robinhood clarification.
The rise and fall of Robinhood marked a stark contrast to the free-commission brokerage’s lackluster debut on the NASDAQ last week.
