Shares of trading app Robinhood Inc. (Nasdaq: HOOD) spiked on Wednesday, as options became available for the first time, closing at $70.39, up $23.59 or 50.4%. Immediately after the market open, shares surged all the way to $85.00 after opening the session at $54.45.
Since pricing last Thursday (29 July) at $38 per share, HOOD's value has nearly doubled to a market cap topping $39bn. Pre-market trading early Wednesday pushed HOOD shares over $53 per share, according to Nasdaq data, driven primarily by small trades of fewer than 100 shares each.
HOOD was trending on Fidelity and discussed heavily on websites Reddit's WallStreetBets and BoggleHeads. Additionally, the Wall Street Journal reports Wednesday HOOD saw strong interest from institutional, rather than retail, investors.
Merry Menlo Park
Over 300,000 Robinhood customers purchased HOOD stock upon last week's IPO, according to the Menlo Park, Calif.-based company. Roughly $19 million in HOOD shares were purchased by retail investors on the stock's first trading session.
But Ark Invest has also purchased a $147.5 million stake in HOOD since late last week, reports added.