Robinhood Surges From Lowest Level Since IPO – Cryptovibes.com – Daily Cryptocurrency and FX News
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On January 28, Shares of Robinhood Markets IncHOOD.O) were seen to reverse course to trade almost 6% higher on the day, pushed by a wider market rebound, after the prices dropped to their lowest level since the stock’s IPO in July 2021 earlier in the day.
The impressive results from Visa and Apple enabled the United States stock indexes to surge on the last day of the week that was marked by massive swings amid fears about aggressive rate hikes by the Federal Reserve and many geopolitical tensions between the West and Russia.
Portfolio manager at Purpose Investments, Gregory Taylor, stated:
“Across the board, we are seeing a pretty big reversion from some of these stocks that have really been crushed.”
Robinhood, the commission-free brokerage saw its stock plunge by more than 14% earlier, after posting a quarterly loss on Thursday. The firm reported a net loss of $423 million for the three months that ended in December when compared with a profit a year earlier, and its costs more than doubled.
Just like most of the existing tech start-ups, Robinhood is yet to turn a profit after its IPO. Notably, its monthly active users dropped by 8% from the sequentially previous quarter as the retail investors decided to pull back from the market.
Chief market strategist at National Securities in New York, Art Hogan, stated:
“Robinhood was one of the pandemic darlings. Almost exactly a year ago, it sat at the center of the meme stock mania. And that has clearly cooled off as we headed into a new year.”
The stock was trading at $12.26 in the afternoon trading on Friday. On its part, the share price at its IPO in July 2021 was $38 and it had exploded to record highs of $85 in August. Short-interest in Robinhood was $501 million, or 10.77% of the float, with nearly $127 million worth of shares sorted over the past 30 days alone, based on a statement by the managing director of predictive analytics at S3 Partners, Ihor Dusaniwsky.
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