the stock dropped more than 8% from its bid price on its first trading day, but that didn’t stop Cathie Wood of ARK Invest from picking up shares from the trading website.
Known as an outspoken stock picker and innovation bull, Wood bought about 1.3 million Robinhood shares (ticker: HOOD) for the $23 billion on Thursday.
ARK Innovation ETF
(ARKK), according to the fund company’s public records of its day-to-day trading activities. Those shares are worth about $45 million based on the stock’s close on Thursday.
Wood may also have bought more Robinhood stock on Friday. ARK Innovation’s portfolio holdings, updated Friday, suggest the fund now holds 3.6 million Robinhood shares worth $126 million – about 0.55% of the fund’s portfolio.
Wood, the founder and head of ARK Invest, has a long track record of investing in innovation companies that are also disruptors. The top positions of the ARK Innovation Fund include Tesla (TSLA),
The fund has also bought shares in cryptocurrency exchange
Worldwide (COIN) since the stock’s IPO in April.
It’s not surprising that Wood buys Robinhood, as the online broker is also a maverick.
With its commission-free trades, Robinhood attracts many young investors – many who are behind the so-called meme stock frenzy. They coordinate on social media platforms like Reddit to push these stocks, specifically:
(AMC) — to heaven. At one point, Robinhood restricted trading in the more volatile stocks like GameStop, causing a backlash. The restrictions have been lifted, but the hard feelings linger.
Despite Robinhood’s exploding user base, the market did not embrace its IPO. After debuting on the Nasdaq at $38, shares fell 8.4% to close at $34.82. The trading platform had a market value of $29 billion from the closing date of Thursday.
Robinhood had set aside up to 35% of its shares for retail investors on its app and website. The stock’s high valuation, regulatory risk and still angry investors may have all contributed to the downward pressure.
But Wood’s bet, as always, will be for the longer term. In afternoon trading on Friday, Robinhood shares were up 5.5% to $36.73.
Write to Evie Liu at firstname.lastname@example.org