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Stakk (ASX:SKK), the company formerly known as Douugh, shot to the top of ADVFN’s biggest movers board on Thursday after inking a deal with U.S. ‘meme stock’ app Robinhood, pushing the microcap to 2.4cps.
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The company has inked a two-year deal with the app provider to “leverage Stakk’s Embedded Finance solutions, specifically, Stakk’s image capture, authentication, and transaction processing capabilities.”
This doesn’t relate to stock trading, necessarily, but instead points to Robinhood’s expansion into the banking services sector, which Stakk described as a company ‘growing up alongside its users.’
Stakk describes itself as a “specialist embedded finance provider for startups” on its website. Thursday’s share price action shows a clear positive response to the deal.
For those out of the loop, you may remember during the COVID years, stocks in the U.S. for struggling brick-and-mortar game retailer Gamestop shot up on an organised push by retail investors – hundreds of thousands at its peak.
It had nothing to do with fundamentals but more to do with a young male userbase, particularly using Reddit, who “liked the stock” – what became a kind of tagline in the moment, one coined by Robinhood’s very media-friendly creator.
From that era, well-known subreddit ‘WallStreetBets’ was formed, or at least, really took off.
This is all a bit millennial, perhaps, for some HotCopper users – but Stakk investors on the forums on Thursday were uniformly pleased with the news. While no monetary value was affixed to the release on Thursday, Stakk did speak of Robinhood’s ‘pedigree,’ which appears to be a claim not questioned by investors.
SKK last traded at 2.4cps.
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