Shares of Robinhood Markets Inc tumbled 12% on Thursday, after the owner of the popular trading app warned that the trading frenzy among small-time investors that boosted its second-quarter revenue would slow down in the coming months.
Robinhood, which has been at the center of the “meme stock” phenomenon this year, posted its first results as a public company, offering a glimpse into the growing clout of retail investors.
The company’s stock, itself dubbed the “meme of memes”, has been on a roller-coaster ride since its market debut on July 29, when it closed 8% lower.
Since then, the stock more than doubled to $85 through the first week of August, partly due to interest from star investor Cathie Wood.
The shares were down 12% at $43.73 by 5:30 a.m. ET on Thursday and were among the top 15 most traded stocks across U.S. exchanges.