August 12, 2021
Despite its initial lack of success on Wall Street, Robinhood seems to have made a comeback in the past week, CNN Business reports.
Robinhood, the popular investing platform that charges zero commission while offering equity, cryptocurrency, and options trading, filed for an initial public offering. On 28 July 2021, the trading app finally went public.
Whether through self-directed or automated investing, Robinhood became a go-to place for many investors who wanted to overcome the 2020 crisis. However, on its first day, Robinhood’s initial stock price of $38 fell to 8%, decreasing even more on the second day.
Aside from this ill-omened start, Robinhood had to deal with some controversy as well. It has recently been fined a record-breaking $70 million by the Financial Industry Regulatory Authority (FINRA) due to system outages and giving false information to its customers.
2021 has not been the best year for Robinhood and there are a lot of angry investors – for example, many of the Reddit “apes” refuse to trade on this platform. Some investors are furious due to Robinhood temporarily halting trading in GameStop shares.
Robinhood Jumps to More Than 40% Over IPO Price
Robinhood went public on the Nasdaq stock market under the ticker HOOD. Since then it has had its ups and downs. In the beginning, the stock plunged 8% and fell even lower the second day at $33.25, and has been trading below that price. But now, everything seems back under control – the stocks went up more than 40% over the IPO price, trading at $54 and shortly hitting $85 last week, although this jump proved temporary.
The future of Robinhood stocks is still uncertain. Some investors are dissatisfied with some of Robinhood’s decisions, while various observers are labeling Robinhood a meme stock. Jonathan Anastas, chairman of the mobile gaming firm Alpha Esports Tech, said: “The platform that powered the meme stock movement has itself become a meme stock — sometimes to Robinood’s benefit and sometimes to its detriment.” It remains to be seen whether Robinhood will prove to be a meme stock or, as some begin to call it, the Facebook of the financial world.