A public company for less than a week, the brokerage app’s stock price hit $85 as rally extends into a second day.
Shares of Robinhood — the brokerage app popular among millennials for its commission-free trading — surged again on Wednesday, rising so much that trading was temporarily brought to a halt three times in the first 30 minutes of trade. With less than a hour of trade remaining, the online broker was up 48% at $69.39, as of 1:45 p.m., accelerating what’s already been a blistering week of gains. Earlier, the stock was briefly up by 81% to hit $85 a share. The comeback was all that much more remarkable after last week’s for the stock, when it sank 8.4% from its initial price of $38 on Thursday. Even ahead of its initial public offering, experts warned that Robinhood’s stock could be primed for a more jagged ride than others on Wall Street because of its popularity among smaller investors. Robinhood reserved a bigger-than-usual chunk of its IPO shares for smaller investors, which fits with its mission of „democratizing finance.“ The company has introduced a new generation of younger and novice investors to the stock market, thanks to its zero-trading fees and easy-to-use app.
