Robinhood Shares Jump, Like the Meme Stocks It Enabled
Robinhood, even yourself.
The stock trading app that helped fuel the small investor frenzy earlier this year soared on Wednesday in exchanges that had all the hallmarks of the “meme stock mania” that drove prices higher. companies like AMC Entertainment and GameStop.
Robinhood shares rose 65% to $ 77, double their price at the end of last week, and trading was briefly halted by the Nasdaq exchange. By mid-morning, stocks had fallen somewhat and had risen about 35%. It was a second day of big gains after jumping 24% on Tuesday.
Robinhood only became a publicly traded company last week. It valued its initial public offering at $ 38 a share, but the stock stumbled on its first day of trading on Thursday, ending down more than 8%.
Since then, however, buyers have emerged, especially among the ranks of individual investors the company caters to. The stock rose to the top of Fidelity’s order list for traders in its brokerage unit on Wednesday, suggesting that demand from day traders is behind the stock surge.
Ark Invest, the fund management firm run by social media savvy stock picker Cathie Wood, has also bought shares of Robinhood for the exchange-traded funds it serves as its investment vehicles. Daily disclosures of her holdings – which are closely followed and sometimes emulated by day traders – have shown her buying over 1.5 million shares of Robinhood, giving her a stake of over $ 100 million at the height of the outbreak on Wednesday morning.
Here’s what else is happening in the markets today:
The S&P 500 was down 0.4% at the start of trading on Wednesday. The Nasdaq composite is up slightly.
The Stoxx Europe 600 was up 0.7%.
Oil prices continued to decline, with West Texas Intermediate, the benchmark for US crude, down 2.7% to $ 68.66 per barrel.
Spirit Airlines said it expected flight cancellations to ease by Thursday. The airline canceled more than 60% of flights on Tuesday and had cut about 50% of flights by mid-morning Wednesday. Spirit said in a statement it had performed a “deep network restart” and blamed the disruption, which began over the weekend and affected hundreds of flights each day, to “overlapping operational challenges. including weather, system crashes and staff shortages. ”Shares of the airline were down about 3% in early trading.
Lyft fell more than 7% in early trading on Wednesday. Despite the news of strong growth for the second quarter on Tuesday, it lost $ 251.9 million. Uber is expected to release its second quarter financial data after markets close on Thursday.
General Motors shares fell more than 8% at the start of the session. The company reported a jump in second-quarter profits, but GM chief executive Mary T. Barra said a global computer chip shortage would continue to be a problem until next year.
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