Robinhood stated that owing to growing consumer needs it has broadened its day-to-day trading hours from 7 AM to 8 PM.
Earlier today on Tuesday, March 29, customer financial investment app Robinhood Markets Inc (NASDAQ: HOOD) revealed its choice to extend the stock trading hours. The brand-new prolonged trading hours are from 7 AM to 8 PM, a long 11- hour stretch.
This comes as part of the business’s objective of supplying 24/ 7 investing. Formerly, the zero-commission app used trading in the time zone 9 AM ET to 6 PM ET. Indicating that it is now providing 4 extra hours of everyday trading.
Robinhood stated that this choice comes as its consumers have been logging into the app outside the marketplace hours. The business is composed:
” Our clients frequently inform us they’re working or preoccupied throughout routine market hours, restricting their capability to spend for their schedule or examine and respond to essential market news. They’re managing a lot, from full-time tasks to school, households, and side gigs. Our brand-new prolonged trading hours for equities will provide more chances to handle their portfolio at a hassle-free time for them, whether that’s in the morning or at night.”
However, some market experts have revealed issues over the extension of these trading hours. The experts state that in the after-hour market, the volume of trading is just a portion of the typical market hours. This can lead to big cost changes, volatility, and distortions.
Robinhood (HOOD) Stock Makes Quick Jump
Soon after the statement on Tuesday, the Robinhood (NASDAQ: HOOD) stock signed up a fast 25% dive. The HOOD stock wound up trading at $1591 on Tuesday.
However, on Wednesday, March 30, it saw an 8.5% pullback with the stock cost trading at $1456 Hence, Tuesday’s cost rise appears to be a short-lived increase instead of a continual relocation.
Apart from its core proposal of commission-free stock trading, Robinhood wants to include extra services on its platform. From 2015 to 2021, Robinhood likewise increased its client base by almost 100% with 22.7 million active accounts to date.
Besides, Robinhood has likewise broadened its services into automated financial investments, cryptocurrencies, and fractional shares. The business has been seeing slowing development in current quarters. The business likewise missed out on Wall Street’s Q4 profits expectations with earnings at $3627 million rather than the anticipated $3763 million.
Well, if the need from its clients is legitimate, these broadened trading hours can assist Robinhood to restore development momentum when again.