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Robinhood Gets a Taste of the Frenzy It Fueled, Slumping 13%

Published 08/05/2021, 09:22 AM
Updated 08/05/2021, 09:23 AM

By Dhirendra Tripathi

Investing.com – Robinhood stock (NASDAQ:HOOD) seemed set for another roller-coaster day in the markets as it plunged 13% in early 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.

 

 

Latest comments

I hope goes to $1
why are they comparing HOOD to meme stocks??? WSB hate HOOD. these volatility are definitely not caused by WSB or retail, its the doings of institutionals.
What r these writers talking about? I have a huge profit in 3 days: Up 80% in 2 days then down 13% today. It is nothing to worry about when the down day is less than half the up.
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