Robinhood (NASDAQ:HOOD) stock is, unsurprisingly, one of the most controversial IPOs (initial public offerings) of the year. After its multiple controversies in the last year and a half, many retail investors are against the idea of investing in the company. Today, some are being swayed, and some are staying firm in their stances. Meanwhile, HOOD stock is seeing its first significant gains since the offering.
Prior to the IPO, Reddit traders and other meme-stock aficionados denounced the idea of buying HOOD stock. After all, the company had taken measures to target short squeeze investors by blocking trades, and they’ve been slapped with hefty fines for other random trading halts in the past. Not to mention, the platform has failed to cope with their user base’s rapid growth, leading to multiple errors alongside these halts.
HOOD Stock Rockets Past IPO Price as Meme Stock Traders Change Their Tone
HOOD stock hit the market just last week, and retail traders were either blasé about it or they rooted for the stock to fail. Outlets like Barron’s, meanwhile, are firm in their conviction that HOOD shares the same behaviors as any other meme stock. In effect, it’s a sort of meta-“meme stock king”; investors took exception with Robinhood because of its mistreatment of meme stocks. Now, it’s a meme stock itself, and they must come to terms with it.
As the stock begins to really rocket, many are changing their negative attitudes. HOOD is up over 35% today, continuing a week of steep gains for the stock. Sure, there are many who are still claiming the stock is on the verge of failure; however, dig a little deeper and you’ll find just as many rolling their eyes at these posters’ emotion-based takes. Others are flexing their gains from the morning, acknowledging that investors’ sour feelings are not enough to keep the stock down.
And regardless of how bearish r/WallStreetBets as a whole might seem on HOOD stock, take a scroll through and look at how many screenshots of Robinhood portfolios there are. Even the board that denounces the trading platform the hardest can’t seem to make the switch elsewhere.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.