On the heels of GameStop's success, Robinhood Markets Inc.'s trading volume in those stocks reached a record $5 billion in 24 hours.
This was a company record and one of Robinhood's best performances in the past year. The success is due to a rush for meme stocks similar to 2021, Decrypt reported.
Robinhood, a popular stock trading platform, saw an impressive $5 billion in trading volume on May 14, nearly double its daily average. The surge in trading activity was highlighted by a tweet from CEO Vlad Tenev, who called the day "one of our biggest days in the last 12 months."
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The mania for trading meme stocks has returned to the markets this week, and the prices of some assets, notably GameStop (GME) and AMC, have soared. Meme stocks are shares of companies that have gained a cult following online, particularly on social media and apps such as Reddit and Telegram.
The unexpected surge in volume led to technical problems that took the Robinhood app offline for two hours. Tenev acknowledged the outage and assured users that the company will update its systems to handle the growing load, while some features may be temporarily unavailable from 1 a.m. to 3 a.m. ET.
Robinhood is also taking steps to prevent future outages. "We will be updating some of our systems to be ready for even higher loads," wrote Vlad Tenev.
The record-breaking day far surpasses the platform's performance in March, when total stock trading volume for the month was $84.7 billion, or an average of about $2.7 billion per day. The sudden spike in trading volume confirms the growing demand among retail investors to access financial markets through easy-to-use platforms like Robinhood.
Robinhood's stock has surged this week as trading has gained momentum.
It's worth noting that Robinhood has expanded its services beyond traditional stock trading to include cryptocurrency transactions, allowing users to buy and sell Bitcoin, ETFs, and meme coins directly from their mobile devices. This diversification into the world of cryptocurrencies has broadened the user base and increased the volume of transactions on the platform.
