Robinhood (HOOD) soared to new highs on Tuesday in a stark contrast from its public debut last week. The investing platform’s stock spiked as much as 18% by mid-session and soared even higher later in the day. Shares were up 24% at market close and trading at $46.80 a piece, holding well above their IPO price of $38.
Investors are keeping a close eye on the stock following Robinhood’s public debut last Thursday.
The stock sank as much as 12% below its IPO price during its first day of trading on the Nasdaq. Shares closed down 8% that day. Some questioned wether their lackluster performance had anything to do with Robinhood’s hybrid auction style debut, a lack of lock-up period for 15% of shares held by employees and others, or concerns over regulatory headwinds.
Robinhood has been a key player in the retail trading boom involving GameStop (GME) and other stocks over the past year-and-a-half. In an unusual move, the company allocated about 35% of its shares to retail investors for its IPO.
Cathie Wood’s Ark Innovation ETF (ARKK) scooped up about 4.9 miillion shares of Robinhood on Thursday and Friday of last week, according to Bloomberg data.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre