What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) jumped 5.2% in the morning session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
After the initial pop the shares cooled down to $76.02, up 4.7% from previous close.
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What The Market Is Telling Us
Robinhood’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 5.3% after the company wasn't added to the S&P 500 Index following the quarterly rebalancing.
On Friday, June 6, 2025, markets speculated that Robinhood was a strong contender to join the Index, meeting criteria such as a market value of at least $20.5 billion and GAAP profitability over the past four quarters, as well as the most recent quarter. HOOD's omission might force investors to adjust their expectations, at least for now.
Robinhood is up 92.7% since the beginning of the year, and at $76.02 per share, has set a new 52-week high. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $2,183.
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