Robinhood Markets (NASDAQ: $HOOD) is a leading financial and investment platform allowing users to trade stocks, cryptocurrencies, ETFs, and options without paying any commission fee based in Menlo Park, CA.
On May 14, Robinhood stock skyrocketed by 9.9% in the morning session, driven by the recent surge in meme stocks.
GameStop Rises 60% as Roaring Kitty Returns
GameStop and AMC Entertainment stocks surged by 60% after the reappearance of Roaring Kitty, the retail trader who played a pivotal role in the meme stock craze of 2021. The trader posted several tweets on his Twitter account on Sunday re-igniting a meme stock rally.
Gill’s return has helped several stocks get a lifeline, resulting in massive price surges. SunPower Corporation, Plug Power, and Beyond Meat Inc. also experienced significant jumps following his return, providing retail traders with the momentum to drive the stocks up, much to the chagrin of short sellers.
Moreover, these activities have driven volumes on the Robinhood platform and increased trading activity following the return of Roaring Kitty. Robinhood stock is currently trading with positive momentum. The trading volume for both equity and crypto on the platform has increased by 36% and 10%, amounting to $80.9 billion and $6.5 billion, respectively.
Furthermore, Reddit stock also benefited from the return of retail traders and surged by 7.13% on Tuesday. Securities lending revenue also saw gains, reaching $13 million, marking an 8% increase. Overall, the data indicates that Robinhood is performing strongly in the short term.
Stock analyst, Myron Jobson, said, “The meme stock saga is a ready-made case study that can be taught in schools to highlight the dangers of FOMO investing.”He added, “While some people were fortunate to make money in a short amount of time by buying and then selling at the right moment during the social media-fuelled surge, many lost out once the bubble burst.”
Short Traders Lose $1B in GameStop Stock
According to the data of the S3 partner, short traders lost approximately $1 billion after a jaw-dropping rally happened on Monday, ultimately pushing the price of $GME by more than 74%.
The abrupt surge in the stock appeared to be instigated by “Roaring Kitty,” who previously rallied a legion of day traders to invest in the gaming stock in 2021, a notable event that etched its mark in Wall Street history.
S3’s managing director of predictive analytics, said, “Expect short covering in this stock as it already had a 100/100 squeeze score prior to today’s trading.”
Robinhood (HOOD) Stock Performance
At close of trading on May 14, HOOD stock was up 6.69% at $18.02. At the time of writing, the market cap is $15.837 billion, with a 24-hour average trading volume of 15,841,329. The price range as of Tuesday was between $17.65 and $18.67, with a 52-week high of $20.55.
Should You Add Robinhood To Your Portfolio?
The resurgence of meme stocks could be a huge boost for Robinhood. The platform is popular with retail traders, and the return of Roaring Kitty could boost traffic and revenue to the platform. As such, HOOD stock could continue rising as long as the meme stock craze lasts.
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