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Robinhood Market Made Bursting Bubbles Wall Street’s Obsession

  • Massive stock surges have investors making dot-com comparisons
  • Retail participation ‘at levels we haven’t seen in 20 years’
The Nasdaq Market Site in the Times Square area of New York, U.S.
The Nasdaq Market Site in the Times Square area of New York, U.S.Photographer: Demetrius Freeman/Bloomberg

Tuesday afternoon, a smallish Chinese real-estate firm, ticker symbol DUO, went crazy on the Nasdaq. Out of the blue, in a vacuum of news, depositary receipts of the Shenzhen-based outfit shot up 13-fold, taking its market capitalization to $4 billion.

Nobody had a definitive reason why. But people could guess. Its name: Fangdd Network Group Ltd., sounds like the acronym for that amalgamation of American megacaps, the “Faangs,” comprising Facebook Inc. and others. Those shares were rallying, and it was easy to believe people had gotten it into their heads that Fangdd could -- somehow -- move along with them.