Robinhood climbs back from lowest level since IPO -Breaking
Medha Singh and Noor Zainab Hussain
(Reuters) – Shares of Robinhood Markets Inc (NASDAQ:), traded almost 6% higher last Friday thanks to a wider market rebound. The stock had touched their lowest levels since its July IPO.
Apple’s (NASDAQ:) as well as Visa’s (NYSE:) stellar performance helped U.S. stocks rise in the final day of an intense week that was marked by swings, amid concerns about Fed rate hikes and geopolitical tensions among Russia and the West. [.N]
Gregory Taylor of Purpose Investments’ portfolio manager, stated that “overall, we are witnessing a fairly big reversion from certain stocks which have really been crushed.”
Robinhood brokerage was free of commissions, and its stock fell over 14% after it reported a quarterly loss.
Comparing to a profit of $11 million a year prior, the company suffered a net loss in December. The costs were more than doubled.
Robinhood, like many other tech startups, has not made a profit since its IPO. The number of monthly active users dropped 8% compared to the previous quarter, as investors with retail backing pulled out.
Robinhood was the most popular pandemic darling. Nearly exactly one year ago it was at the heart of the meme stockmania. Art Hogan of National Securities New York stated that this trend has subsided.
On Friday afternoon, shares traded at $12.26. At its July IPO, the share price was $38, and had reached a record $85 in August.
According to Ihor Dusesky, S3 Partners managing director for predictive analytics, short-interest in Robinhood reached $501 million or 10.77% float. There were approximately $127 million of shares that had been sold over the past 30 days.
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