(Bloomberg) — Wall Street’s lackluster welcome for Robinhood Markets Inc. didn’t last long.
Shares of the popular trading app, which became a household name when legions of stuck-at-home amateurs turned investing into a hobby, soared as much as 19% to $45 by 11:25 a.m. New York time.
It marks the first time the company’s stock has held well above the $38 price at which it went public, except for the first few moments of its trading debut Thursday, before slipping back and ending lower on the day. It’s also the first time it has surpassed the $43 target that was once set as the upper bound on the proposed IPO price.
While many were quick to downplay the stock’s reception as individual traders largely shunned buying during its first trading session, it did find backing from some high-profile investors.
Cathie Wood’s flagship ARK Innovation exchange-traded fund holds 4.9 million shares, according to data compiled by Bloomberg. CNBC’s Jim Cramer said Robinhood could make an acquisition similar to Square Inc.’s $29 billion purchase of Afterpay Ltd.
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