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Robinhood said that owing to growing customer demand it has expanded its daily trading hours from 7 AM to 8 PM.
Earlier this week on Tuesday, March 29, consumer investment app Robinhood Markets Inc (NASDAQ: HOOD) announced its decision to extend the stock trading hours. The new extended trading hours are from 7 AM to 8 PM, a long 11-hour stretch.
This comes as part of the company’s goal of providing 24/7 investing. Previously, the zero-commission app offered trading in the time zone 9 AM ET to 6 PM ET. Meaning that it is now offering 4 additional hours of daily trading.
Robinhood said that this decision comes as its customers have been logging into the app outside the market hours. The company wrote:
“Our customers often tell us they’re working or preoccupied during regular market hours, limiting their ability to invest on their own schedule or evaluate and react to important market news. They’re juggling a lot, from full-time jobs to school, families and side gigs. Our new extended trading hours for equities will give them more opportunities to manage their portfolio at a convenient time for them, whether that’s in the early morning or in the evening.”
However, some market analysts have expressed concern over the extension of these trading hours. The analysts say that in the after-hour market, the volume of trading is only a fraction of the normal market hours. This can result in large price fluctuations, volatility, and distortions.
Robinhood (HOOD) Stock Makes Quick Jump
Soon after the announcement on Tuesday, the Robinhood (NASDAQ: HOOD) stock registered a quick 25% jump. The HOOD stock ended up trading at $15.91 on Tuesday.
However, on Wednesday, March 30, it witnessed an 8.5% pullback with the stock price trading at $14.56. Thus, Tuesday’s price surge seems to be a momentary boost rather than a sustained move.
Apart from its core proposition of commission-free stock trading, Robinhood is willing to add additional services to its platform. Over the last year of 2021, Robinhood also increased its customers base by nearly 100% with 22.7 million active accounts as of date.
Besides, Robinhood has also expanded its services into automatic investments, cryptocurrencies, and fractional shares. However, the company has been witnessing slowing growth in recent quarters. The company also missed Wall Street’s Q4 revenue expectations with revenue at $362.7 million instead of the expected $376.3 million.
Well, if the demand from its customers is legit, these expanded trading hours can help Robinhood regain growth momentum once again.