Robinhood surges more than 50pc as day traders pile in
Bailey Lipschultz
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Robinhood Markets jumped a whopping 50 per cent after a wave of individual investors joined the likes of Cathie Wood to pile on the zero-fee trading platform.
The stock traded as high as $US85 in New York before trimming gains to close at $US70.39 as the volatility triggered at least three trading halts. The frenzied share buying pushed the company’s market value to a peak of $US65 billion ($88 billion) from $US29.1 billion after its debut on Nasdaq last week.
Robinhood’s shares took off overnight.
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’We’ve seen this movie before and this pump and dump of Robinhood will not end well for many traders,” said Ed Moya, senior market analyst at Oanda. “Robinhood’s revenue streams will come into question once the government applies rules to payment of order flow.”