Robinhood shares drop as stock continues to seesaw
Shares in trading platform Robinhood dropped sharply today, signalling that this week’s four-day stock rally might have reached its end.
After a woeful initial public offering last week, which saw the firm’s market cap shed $3bn in just a few minutes of trading, investors had poured into the firm this week.
Yesterday its share price briefly touched a record high of $85 before slipping back slightly.
However, the decline has gained pace today, with the firm, which allows retail investors to trade stock without paying commission fees, down 22.5 per cent this evening.
The fall is weighing on the Nasdaq, which was otherwise trading in the black today.
Robinhood became infamous at the beginning of the year amid a frenzy of trading in so-called meme stocks such as GameStop.
Amid massive market volatility, the firm came under fire after electing to suspend trading of certain stocks.
In an unusual move, Robinhood reserved between 25 and 30 per cent of its IPO shares for retail investors who are users of its app – which it warned could spark volatile trading upon listing.