Lifting the HOOD: Robinhood Stock Breaks Out Past IPO Price

STT Breaking News Chat catches rally early…
Cathie Wood ups her investment in HOOD stock…
Vlad maintains Robinhood is “well positioned”…

Robinhood Markets Inc (NASDAQ: HOOD) surged after a lackluster public debut last week.

HOOD stock jumped as much as 28% in today’s session and closed 24.20% higher at $46.80 per share.

Robinhood’s value hit a daily high of $48.59 per share, up more than $10 from the IPO price of $38 per share.

The rally comes as retail investors appeared to be pouring into the stock after Robinhood reserved about 25% of its IPO shares for its users.

Data from Fidelity shows HOOD was the number-three stock on the broker today with nearly 6,300 buy orders and 5,300 sell orders.

According to SwaggyStocks, HOOD had the highest comment volume and most positive sentiment of any ticker on WallStreetBets today.

Table of Contents

1 STT Breaking News Chat Notices HOOD Stock
2 Cathie Wood Believes in HOOD Stock
3 Vlad Unphased By Weak Debut
4 Robinhood Users Shunned IPO
5 Four Facts About HOOD Stock
6 One Platform. One System. Every Tool

STT Breaking News Chat Notices HOOD Stock

STT Breaking News Chat took note of HOOD’s run early in today’s session.

An alert was sent out in the chat at 10:05 a.m. Eastern which read:

“$HOOD quietly trading higher, above IPO price of $38, now $39.50 up 4.8%, $HOOD Above $40.25 (Day 1 High) then maybe it’s worth a flyer. I have alerted that when IPO’s trader through their Day 1 high, then it becomes a catalyst for a trade.”

A look at the chart shows that alert was sent out just before the stock took off.

But the Breaking News Chat team saw potential for this stock to run even further.

At 11:44 a.m. Eastern they sent another alert:

“$HOOD Flagging .50 away from highs. Chart is setting up for another leg higher if it breaks through $45 which is today’s high, the $40.25 breakout from earlier was key. Set your alerts for $45.”

At 1:13 p.m. Eastern, the stock broke past $45 and hit its daily high of $48.59 less than 30 minutes later.

Cathie Wood Believes in HOOD Stock

The retail investor attention on HOOD stock comes as famed stock-picker Cathie Wood continues to bet on Robinhood.

Wood’s ARK Innovation ETF (ARKK) disclosed today they’re now holding 4.9 million shares of HOOD stock at a market value of $185.3 million.

Robinhood ranks in 34th place on ARKK’s list of holdings with a 0.82% weighting as Wood continues to buy up more of the stock.

She appeared to believe in this stock early on, buying 1.3 million shares on the day of the IPO.

ARKK’s Robinhood holdings then jumped to 3.6 million shares the next day and 4.9 million today.

Vlad Unphased By Weak Debut

After Robinhood made its disappointing public debut last week, CEO Vlad Tenev pushed back on doubters.

In an interview with CNBC, Tenev said, “We’re building a long-term business, so you have to ignore these short-term fluctuations … Look back on what the company’s been able to do over the past six years. We’ve delivered a lot of great products, a lot of value to customers, and a lot of value to shareholders.”

He also expressed optimism for the future growth of HOOD stock, saying, “I’m excited to deliver on the things that will drive growth in the future. It’s gonna be new products, it’s gonna be expansion. We feel very well-positioned with this company to keep delivering value to our customers.”

Robinhood Users Shunned IPO

It appears Robinhood’s users weren’t as interested in the company’s IPO as anticipated.

Remember, 25% of HOOD stock was set aside for users to purchase.

But the company revealed in a post on its app that 301,573 users bought shares ahead of the IPO.

According to WSJ, that represents just 1.3% of Robinhood’s more than 22.5 million funded accounts as of June 30.

Four Facts About HOOD Stock

HOOD closed Monday at $37.68 per share, below its IPO price.
Shares opened today’s session at $37.91.
Today was the company’s first session close above the IPO price.
Trading volume nearly tripled today to more than 77 million shares vs. the average of just over 40 million shares.