Robinhood, the “democratizing” zero-fee trading app that helped create the retail trading frenzy that led to the wild ride with Gamestop and AMC Entertainment stocks, is now it’s own wild ride.
It’s a self-fulfilling prophecy.
Robinhood launched its IPO on July 29th at a price of $38 per share. Since then, it’s been a rollercoaster of volatility.
In its first day of trading, the stock dropped 10%, made some minor recoveries later in the day, and closed at a price of $34.82.
In its first full week of trading however, the stock jumped 57%, to $55.01, well above its initial public offering price of $38.
Since then, there have been major percent increases and decreases each day to the value of the stock. From highs of up 50% to lows of down 28%, share prices have been very volatile day to day.
Speculation abounds as to what is causing all the volatility, but nothing more concrete than “meme” has emerged.
The push is that this is one of the more exciting IPOs of the year with a stock that is single-handedly responsible for a sea-change in trading, opening up a new world to “retail” investors that had until then been the …read more.