The world is run by memes, and we’re all just laughing in it. Robinhood, one of the most controversial companies of 2021, just took another surprising turn — jumping 24% on Tuesday and another 50% on Wednesday when options trading began.

• Robinhood is now up 85% from its IPO price last week.

What’s the big deal? What seemed like a dud IPO — falling 8% on its first day — quickly became a meme favorite days later.

Robinhood’s sluggish start might’ve been partly due to the early selling allowed in this unique case:

• 35% of early IPO shares were reserved for retail investors — who can sell on the first day.
• 15% of an employees’ shares could be sold on the first day of trading vs. waiting 6 months.

Robinhood’s rally came despite bad press early on — as Redditors pledged to stay away from the stock — but circumstances changed.

Fickle hearts: On Tuesday, retail traders bought $19.4m in Robinhood stock — 10x the volume from the previous day. But big institutions are also taking an interest in Robinhood:

• Cathie Wood’s ARK Invest now holds ~$250m in Robinhood shares among its different ETFs.
• John Heagerty of Atlantic Equities predicts a $65 price target — seeing continued growth with new product launches.

But not everyone’s biting. David Trainer of New Constructs argues Robinhood is worth no more than $9b (80% downside from current price) — and that regulatory risks could impact its stock, among other risks.

Look out for: Robinhood’s second-quarter earnings near the end of August — which will give investors a first look from the impacts of slowing trading activity and crypto crash.