Shares of Robinhood Markets Inc. surged for a second day on Wednesday, nearly doubling as investors crammed into options on the first day of their trading.
Robinhood, which debuted on the Nasdaq last week at $ 38 a share, has hovered around $ 60 in recent trading, a 29% increase, after climbing to $ 85 earlier in the session. . The performance marks a remarkable turnaround for a company which had a disappointing start to trading last week. On the day trading started, Robinhood fell more than 10% during the day, before closing below $ 35 per share.
This week, however, the sentiment surrounding the title has reversed. Some individual investors have stepped up their buying, buying $ 19.4 million of Robinhood shares on Tuesday on a net basis, their highest daily amount to date, according to data from VandaTrack from Vanda Research.
Cathie Wood, Managing Director and Chief Investment Officer of ARK Investment Management LLC, also recovered shares. According to data released on ARK’s website Tuesday, flagship exchange-traded fund ARK Innovation owns around 4.9 million Robinhood shares. ARK also owns Robinhood shares in at least two of its other ETFs, according to data from ARK funds.
Volatility prompted the Nasdaq to suspend trading in the stock, listed under the symbol HOOD, three times on Wednesday morning.