65% in a few hours and already 3 interruptions in the exchanges. Here is a frenzy worthy of GameStop . This is the honor that the stock marketers did on Wednesday as Robinhood, their favorite online broker, entered Nasdaq on 29 last July in relative indifference . Its IPO price was set at 38 dollars per share. It hit 82 dollars at the start of the session on Wall Street, doubling Robinhood’s valuation by two, to 65 billion dollars.

The craze did not last and the title only earned “only” 32 % at the end of the afternoon. But the volume of transactions for individuals had already increased tenfold from the previous day, according to Bloomberg. And no less than 38 millions of shares had changed hands in an hour.

All behind Cathie Wood This runaway seems to have been triggered by the decision, Tuesday, of Ark Investment management, the investment company of star manager Cathie Wood , to increase her stake in Robinhood.

On listed fund Ark Fintech Innovation ETF bought close to 85. 000 Robinhood shares on Tuesday, already bumping the headline of 24%. Ark thus confirms its interest in the online broker who had encouraged the outburst of crowds during the frenzy on “same stocks”, such as GameStop or AMC Entertainment at the beginning of the year.

22 million users The ARK Innovation ETF had already invested in 1.3 million Robinhood securities on the very disappointing first day of the listing of the online broker. An 8% drop for one of the most anticipated IPOs of the year. The result was not up to the expectations of the group which has nearly 22 millions of ‘users.

Individuals will therefore end up responding to the broker’s calls. He had pulled out all the stops, organizing a presentation of the company ahead of the IPO for their attention. It had also reserved up to 32% of the shares offered to its users, who were able to acquire shares in the same price than institutional. A favor that could also explain why the title took a long time to take off. A part of them having already been satiated upstream, they did not need to rush for the title from the first days.

RECENT POSTS Don't Miss POSTS