Robinhood Takes Flight With Serious Increase After Faulty Exchange Launch! Shares of online broker Robinhood gained more than 80 percent Wednesday. In the wake of the disappointing IPO, small investors are now striking afte
Shares of online broker Robinhood gained more than 80 percent Wednesday. In the wake of the disappointing IPO, small investors are now striking after a leading fund manager bought it.
Many Internet users have used the online broker Robinhood to deliberately increase their share prices - now the provider itself is the subject of crazy price speculation. After Robinhood's failed to debut on the stock market last week, the prices of the platform's securities skyrocketed for the second day in a row. Demand for the online broker's shares was so high Wednesday that trading with them was temporarily suspended.
The cost of papers, meanwhile, rose 81 percent to more than $85. The day before, the shares rose above the issue price for the first time since the IPO.
Star investor Cathie Wood's extensive share purchases for Ark Innovation, a listed flagship fund, are said to be responsible for the significant improvement. According to the Reuters news agency, the ARK Innovation ETF currently holds approximately five million Robinhood shares valued at approximately $229 million.
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"People are trying to jump on Cathie Wood's vote of confidence on Robinhood stock," said Thomas Hayes, executive director of Great Hill Capital in New York. Your entry was the deciding factor for many other investors.
Small investors play a special role for Robinhood stock: the broker has set aside a larger-than-usual portion for amateur stockholders for an IPO. The company is targeting a new generation of young investors with smaller budgets who will trade via smartphone and for free. However, this has also resulted in fewer shares being issued to large institutional investors, who are known to hold more of a long-term stake.