To meme or not to meme? That is Robinhood's question.
The company that pretty much invented meme stocks doesn't want to be a meme stock, but that might not be something it can control.
Meme stocks have enjoyed a red-hot August, and shares of no-fee trading app Robinhood (HOOD) --the "meta meme stock" that acted as the birthplace of the retail trading boom before going public in July-- look guaranteed to end the month up by more than 10%.
But while increased social media chatter around the stock seems to imply that retail investors are warming to the company despite Robinhood's decision to pull the plug on trading in January's meme stock short squeeze on GameStop (GME) and AMC Entertainment (AMC), the lack of retail support so far has been evident in Robinhood's trading action.
After spiking more than 100% in its first few days of trading, the stock gave back more than 40% of those gains by Aug. 4 thanks in part to the enmity from January and Robinhood's seeming lack of interest in courting retail investors.
The company's CFO, Jason Warnick even told CNBC after earnings that "It doesn't resonate with me to call Robinhood a meme stock."
But based on social media's ability to make Robinhood move, it looks like Warnick might be in for a debate.
On this week's edition of MemeMarkets, we pose the question: "IS Robinhood a meme stock?"
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(END) Dow Jones Newswires
August 31, 2021 14:18 ET (18:18 GMT)
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