Robinhood Surges After Start Slow on Wall Street

The stock of Robinhood, the U.S.-based financial services company that pioneered commission-free trading and became famous on the back of meme trading, is witnessing a strong beginning days after its debut on Wall Street.

The initial public offering of Robinhood was completed on Thursday, and the company’s stock was listed on the Nasdaq index on the New York Stock Exchange (NYSE), after being priced at the lower end of the offered range at $38 per share. However, it was a surprise to see a drop of about 8% on its first day of Trading.

On Tuesday, the share price surged by more than 24% and reached $46.80, amid increased demand from Wall Street investors, especially retail investors, the biggest targeted market segment of the very company.

Despite some criticisms, Robinhood seems to be attracting more investors, building on its recent surge to fame on the back of meme trading, highlighted by the GameStop saga.

Robinhood was also able to grow its client base since the onset of the coronavirus pandemic, with more people going online and seeking various investment options, including meme and Reddit traders.

Forbes estimates that the company’s founders, Vladimir Tenev and Baiju Bhatt, gained about $1.2 billion from the surge in the stock price, with the first adding about $557 million to his net worth and the second about $627 million.

CNBC recently reported that Robinhood might acquire the financial technology industry, expanding its activity, which might provide more support for the company’s stock.

The company that began in 2013 allows retail traders access to the stock market, other assets and futures, and cryptocurrencies.