Bloomberg News reported that U.S. online securities platform Robinhood shares jumped nearly 90% in just two days.
Controversy over the surge in stock prices is unlikely to subside easily as opinions are divided over Robinhood’s valuation on Wall Street.
Shares of Robin Hood surged 50 percent to close at $70.39 on Wednesday (local time) in Nasdaq.
On the previous day, it jumped by 25 percent, up 86 percent for two days.
On the 29th of last month, when Robin Hood was listed, it fell 8 percent from the public offering price of $38 and surged 90 percent in just a week.
Experts analyzed that various factors contributed to the surge in stock prices.
First, it was pointed out that volatility increased as option trading began on the same day. In addition, the fact that Cashwood’s listing index fund (ETF) “Arc Innovation (ARKK), which is called “Don Tree Sister,” is increasing the purchase of Robin Hood shares also contributed to the increase, Bloomberg reported.
In particular, on the 3rd, Robin Hood’s stock trading volume surged 10 times from the previous trading day, and stock prices began to soar. In addition, data from Dow Jones showed that Robinhood was the second most traded stock on the U.S. market in a single day.
In fact, according to the Wall Street Journal (WSJ), the number of comments on Robin Hood’s stock code “HOOD” surged during the day on Reddit’s social media platforms, including Wall Street Betts, which triggered the GameStop earlier this year.
The WSJ reported that individual investors seem to have driven the surge in stock prices as they followed the trend and purchased a large number of Robinhood shares.
Experts said that the situation is similar to the surge in stock prices of Meme Stock (which is popular on the Internet) such as GameStop and AMC earlier this year.