'Meme du jour' Robinhood stock soars over 20%, passes IPO price

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Reuters 03 August, 2021 - 02:50pm 64 views

Austin City Limits, Music Midtown and iHeartRADIO festivals have all dropped the rapper

DaBaby has been removed from more music festivals following ongoing fallout from homophobic comments made by the rapper last month.

The rapper, real name Jonathan Kirk, has been widely condemned for the remarks he made about homosexuality and people with HIV/AIDS while on stage in Miami on July 25, with the likes of Elton John, Madonna and Dua Lipa all criticising DaBaby last week.

Now, festivals including October’s Austin City Limits and next month’s Music Midtown have also announced that DaBaby will no longer be appearing.

Austin City Limits, which is run by the same promoters as Lollapalooza, C3 Presents, said “DaBaby will no longer be performing at Austin City Limits Music Festival — lineup update coming soon.”

DaBaby will no longer be performing at Austin City Limits Music Festival — lineup update coming soon. pic.twitter.com/jAYfdJFxJf

— ACL Festival (@aclfestival) August 3, 2021

Music Midtown posted a near-identical statement. “DaBaby will no longer be performing at Midtown Music Festival. Lineup update coming soon.”

In addition, Rolling Stone reports that DaBaby has been dropped from the bill of iHeartRADIO Festival in Las Vegas, which also takes place next month.

The HIV charity Terrence Higgins Trust denounced DaBaby’s comments last week, saying that they “perpetuate HIV-related stigma and discrimination, as well as spreading misinformation about HIV”.

DaBaby first apologised for the remarks on Twitter on July 27, saying he had been “insensitive” and “anybody who done ever been effected by AIDS/HIV y’all got the right to be upset”. However, he later added: “Y’all cheer the fuck up & be proud of who you are cuz you can’t make me feel less of myself.”

Yesterday (August 2) he offered a second apology. “I want to apologise to the LGBTQ+ community for the hurtful and triggering comments I made. Again, I apologise for my misinformed comments about HIV/AIDS and I knew education on this is important. Love to all. God bless.”

Read full article at Reuters

Robinhood’s Stock Jumps, Reversing Faltering IPO Debut

The Wall Street Journal 03 August, 2021 - 05:00pm

Photo: Amir Hamja for The Wall Street Journal

Shares of Robinhood Markets Inc. jumped Tuesday, surging past the company’s initial-public-offering price in a reversal from last week’s underwhelming trading debut.

The company’s stock, which trades under the ticker symbol HOOD, was up 17% at $43.92 in recent trading and earlier touched a high of $45. Robinhood, the maker of the popular zero-commission trading platform, made its debut on Nasdaq last week, opening at $38 a share. Its stock tumbled shortly after trading kicked off, falling more than 10% intraday, before settling...

Shares of Robinhood Markets Inc. jumped Tuesday, surging past the company’s initial-public-offering price in a reversal from last week’s underwhelming trading debut.

The company’s stock, which trades under the ticker symbol HOOD, was up 17% at $43.92 in recent trading and earlier touched a high of $45. Robinhood, the maker of the popular zero-commission trading platform, made its debut on Nasdaq last week, opening at $38 a share. Its stock tumbled shortly after trading kicked off, falling more than 10% intraday, before settling below $35.

In the days since, Robinhood’s stock struggled to surpass its IPO price—until Tuesday. A catalyst behind the jump wasn’t immediately clear.

Analysts and traders have been carefully watching Robinhood’s first few days of trading because of the company’s unusual decision to allocate a large chunk of its shares to its own customers. As much as 25% of the IPO shares went to Robinhood customers, The Wall Street Journal previously reported. Typically, individual investors receive well under 10% of IPO shares in such deals, according to brokers.

In the end, roughly 301,500 Robinhood customers participated in the IPO, the company said recently. Yet outside the company’s customer base, data show, demand was tepid. Excluding IPO shares, individual investors purchased nearly $18.9 million of Robinhood shares on a net basis during the stock’s first day of trading, according to data from Vanda Research’s VandaTrack. In comparison, individual investors purchased a net $139.9 million of shares during Uber Technologies Inc.’s first day of trading and nearly $70 million during Didi Global Inc.’s trading debut.

Demand from individual investors for Robinhood stock has continued to be lackluster in the days since, data through Monday from VandaTrack show.

A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data.

Robinhood has become a divisive company for many individual investors in the meme-stock era. Many remain loyal fans and customers, crediting Robinhood with giving them access to the stock market. Others, however, remain upset about the trading restrictions that the company imposed in January, which prevented users from buying shares of meme stocks such as GameStop Corp. during volatility. Many users vowed in advance of Robinhood’s trading debut that they would avoid the stock—or even make bearish wagers against it.

Still, the company has found advocates for its stock elsewhere. Cathie Wood, chief executive and chief investment officer of ARK Investment Management LLC, has scooped up Robinhood shares. The company’s flagship ARK Innovation exchange-traded fund holds about 4.9 million Robinhood shares, according to data on its website. ARK also holds Robinhood stock in at least two of its other ETFs, data show.

CNBC’s Jim Cramer said on camera Monday that he was “blessing the stock” in a segment about how Robinhood could branch out into other forms of finance.

“I think this army of 22 million users will grow and become more powerful,” Mr. Cramer said. “That’s why I’m telling you that Robinhood can be bought here.”

The brokerage app Robinhood has transformed retail trading. WSJ explains its rise amid a series of legal investigations and regulatory challenges. Photo illustration: Jacob Reynolds/WSJ The Wall Street Journal Interactive Edition

Write to Caitlin McCabe at caitlin.mccabe@wsj.com

Robinhood shares soar more than 20 percent despite a lack of news

New York Post 03 August, 2021 - 12:21pm

By Lydia Moynihan and Theo Wayt

Robinhood is starting to behave like a meme stock.

Shares of the free stock-trading app popped more than 20 percent Tuesday morning despite a lack of news, befuddling traders and drawing comparisons to the wild movements of shares like GameStop and AMC.

The Silicon Valley-based company’s stock on Tuesday surged as high as $45, or 21 percent from the previous day’s close. The shares recently changed hands at $43.18, up 16 percent, giving the company a market capitalization of more than $36 billion.

That marks a bold comeback for the popular trading app, whose shares fell by more than 10 percent moments after its highly anticipated Nasdaq stock debut last week.

“I don’t think anyone knows why the market does what it does, but the markets think Robinhood is fairly valued for now,” Howard Lindzon, venture capitalist and early Robinhood investor told The Post. “We’ll know more about stock performance in a month but people love the product and the data suggests people want to be left alone and invest.”

Some market watchers speculated that the stock price could foreshadow a coming short squeeze. Heavily shorted stocks can be pushed higher as traders buy up shares in anticipation of a massive short squeeze. But experts on short selling brushed away the theory.

“There’s not nearly enough short interest to affect a stock price that significantly,” Ihor Dusaniwsky of S3 Partners told The Post. “This is a long buying not a short covering rally.”

Others think the increased buying could be a copycat trade. Controversial stock picker Cathie Wood, who runs Ark Invest, has snatched up millions of HOOD shares the past few days — and acolytes could be following in her footsteps.

“It could be a reaction to the headlines that Cathie Wood bought it the first two days it traded,” Tim Anderson, managing director at TJM Investments speculated.

Users of Reddit’s WallStreetBets forum — where chatter about shorting Robinhood stock reached a fever pitch last week — also seemd baffled by the stock’s surge on Tuesday.

“Holy f–king hood,” wrote one user.  “Lmao at those who laughed at HOOD going down on IPO,” wrote another.

Trading in Robinhood kicked off at $38 a share around 12:30 p.m. on Thursday after the firm’s Wall Street bankers had priced the stock at the low end of its $38-to-$42 IPO range in an effort to secure a successful first day of trading.

The shares fell to as low as $33.35 before recovering slightly to end their first session down 8.4 percent at $34.82 a share.

Robinhood Surges 24% to Surpass IPO Price for First Time

Bloomberg 03 August, 2021 - 10:39am

Shares of the popular trading app, which gained prominence when legions of stuck-at-home amateurs turned investing into a hobby, soared 24% to $46.80 on Tuesday. The move came as more than 88 million shares changed hands, larger than the trading volume for Friday and Monday combined.

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