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Robinhood, which began its NASDAQ listing last week under ticker HOOD in one of the most anticipated and unusual IPOs of the year, and which has seen its stock halt several times due to volatility days later faced a backlash from the walls of Reddit. army.
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“I don’t remember seeing a positive message about the HR IPO. I’ve only seen negative comments about this on WSB, ”one person posted on Reddit.
“I say positively to everyone I know not to buy $ HOOD,” replied another.
Robinhood was one of the most commented stocks during its week of IPO on WallStreetBets, according to The Street.
Some investors are still angry that at the start of the year Robinhood halted trading in some popular stocks on the Reddit r / WallStreetBets sub-thread. Retail traders, who intended to take down hedge fund short sellers by buying stocks that didn’t seem to have much chance of success, were unable to trade stocks such as GameStop, AMC Entertainment and Bed Bath & Beyond. Robinhood said last week that it continuously monitors the markets and makes changes where necessary. “In light of recent volatility, we have limited trading for certain securities to position close only,” according to a statement posted on its website at the time. The company has also raised the margin requirements for certain securities.
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One Reddit user simply wrote “January 28 # never forget,” a reference to date, according to CNN.
In addition, people are angry at the platform’s multiple outages, which prevent them from trading, which has prompted several posters suggesting that Robinhood shares be short-sold, CNN reports.
Jonathan Anastas, chairman of the board of directors of Alpha Esports Tech, told GOBankingRates that “there is a bit of irony here”.
“Robinhood – the trading platform for ‘memes stocks’, has itself become a meme action, both on the positive news from activist investors and on the downsides of filed insider selling intentions. Which means Robinhood itself is seeing high volatility in stock prices, like most stock trades the platform has found favor on, meaning, at the end of the day, “you can live by.” the same, but also die of it ”.
Anastas adds that the person who has an active Robinhood account “is the same person who plays 7 hours a day and trades alternative currencies and NFTs based on their passions, whether they are an influencer, a athlete, artist or brand “.
“We are in a generational change where passionate platforms are as much investments and market places as places of expression of his passions.
Despite the anger, the stock was up 65% last Wednesday, to $ 77. HOOD, which got off to a dismal start on its first day on NASDAQ, saw a big turnaround: the stock rose 120% for the week, according to CNBC.
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So far today, HOOD is up 3.7%, at $ 57.
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This article originally appeared on GOBankingRates.com: Robinhood Surges as “Meme Stock” – but Reddit’s r / WallStreetBets says “Don’t Buy”
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