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Robinhood shares fly again, soaring 80%

Shares of Robin Hood, a popular securities firm for fee-free trading among millennials, surged again on Wednesday, soaring to a temporary suspension of trading three times in the first 30 minutes of trading.

With less than an hour of trading time remaining, online brokers have already accelerated a fierce weekly rise to $ 69.39, up 48% at 1:45 pm. Previously, stock prices temporarily rose 81% to $ 85 per share. Last week’s comeback was far more remarkable. Matte debut Share price when it fell 8.4% from the initial price of $ 38 on Thursday.

Experts warned that Robin Hood’s stock may be more jagged than other Wall Street stocks because it’s so popular with small investors prior to its initial public offering. ..

Robin Hood has booked a larger chunk of IPO stock for small investors. This fits into the mission of “financial democratization.” The company introduced a new generation of young and novice investors to the stock market thanks to zero transaction fees and an easy-to-use app. However, the move has also reduced stocks given to large institutional investors who are reputed to be long-term stable stockholders.

The controversial company enjoys some well-known support, including the purchase of shares by starstock picker Cathie Wood, who focuses on innovative companies.

Her flagship ARK Innovation Exchange Traded Fund owns nearly 4.9 million shares, making Robin Hood the 29th largest shareholding in the fund. The fund’s total assets are approximately $ 25.5 billion.

Beyond that, analysts knew the explanation for the stock surge.For some, it’s reminiscent of GameStop and other explosive moves. “Meme stock” earlier this year.


The family has sued Robin Hood for his son’s suicide …

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These stocks have skyrocketed to a height that professional investors consider unreasonable. Many were beaten in the midst of a turnaround, and they caught a wave of interest from small investors who spit on each other online.

Robin Hood has generated a lot of passion between users and critics, and the polarization effect has been demonstrated in its wild, short time on Wall Street. After opening at $ 38 last week, it has fallen to $ 34.82. It has more than doubled in less than four days.

“I hate Robin Hood, but I made $ 1,000 in 20 minutes,” said one user. Reddit WallStreetBets Forum, The explosive central hub of this year’s meme stock.

The company has already achieved the strong growth that Wall Street claims. Revenue was $ 959 million, up 245% last year. Robin Hood has put together an estimated 22.5 million funding accounts since its inception in 2013, as clients trade everything from stocks to options to cryptocurrencies.

However, Robin Hood also paid more than $ 130 million to resolve a long list of regulatory accusations. Critics say Robin Hood encourages unsophisticated investors to engage in excessive and risky transactions, and regulator scrutiny remains likely to be high.

December, SEC Accusation against Robin Hood Because it doesn’t properly disclose how it makes money, and it doesn’t always give its clients the best execution price for their stock trading. Robin Hood paid $ 65 million to settle the indictment, but did not officially admit that it had done anything wrong.

June 2020, A 20-year-old man took his life He falsely believed that he had lost nearly $ 750,000 in a dangerous deal he made in Robin Hood. His parents later filed a proceeding against Robin Hood for tort, distress due to the negligence of mental distress, and unfair business practices.

Robinhood shares fly again, soaring 80%

Source link Robinhood shares fly again, soaring 80%

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