Shares of popular stock trading app Robinhood skyrocketed on Wednesday, extending a two-day rally that has doubled the company’s market capitalization and made its billionaire cofounders even richer.
Robinhood shares jumped 50% during trading on Wednesday, after surging 24% on Tuesday. That pushed up the net worths of the company’s two cofounders, Vlad Tenev, 34, and Baiju Bhatt, 36,by $1.4 billion and $1.6 billion, respectively.
Based on Wednesday’s closing price of $70.39, Tenev is now worth $4.3 billion, while Bhatt is worth $4.9 billion, according to Forbes’ calculations. (Tenev and Bhatt began the day worth an estimated $2.9 billion and $3.3 billion, respectively.)
The pair took the company public on the Nasdaq
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Robinhood shareholders can thank a vote of confidence from one of Wall Street’s most popular tech investors, followed by bullish sentiment from Reddit traders.
High-profile investor Cathie Wood of ARK Invest, which invests in “disruptive innovation” like Tesla
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Cathie Wood’s endorsement—along with other high-profile Wall Street figures such as CNBC host Jim Cramer, who recently gave Robinhood his stamp of approval—has led to large amounts of retail investors buying up the stock. Trading of options on Robinhood stock also began on Wednesday, fueling further volatility in the stock price.