Small-time investors use Robinhood Markets Inc. to send stocks to the moon. Now they are setting their sights on the trading app itself.
Investors piled into Robinhood options on their first day of trading Wednesday, helping send the stock up sharply. Robinhood, which made its debut on Nasdaq last week at $38 a share, closed Wednesday at $70.39, an 85% jump from its initial-public-offering price.
The stock surged as high as $85 earlier in the session, nearly double its Tuesday closing price of $46.80 a share.
It is a remarkable turnaround for a company that just last week suffered a disappointing start to trading. On the day that trading kicked off, Robinhood tumbled more than 10% intraday, before finishing below $35 a share.
This week, sentiment surrounding the stock reversed course. On Wednesday, more than 172 million Robinhood shares changed hands, according to preliminary data from FactSet shortly after the close of the session, surpassing the 102.5 million during the company’s first day of trading. That made Robinhood the second-most actively traded stock in the U.S. market, according to Dow Jones Market Data, based on an analysis of companies trading above $2 on the New York Stock Exchange or Nasdaq.