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Robinhood Gets Cathie Wood’s Backing Despite Miserable First Day

July 30, 2021, 6:40 AM

Robinhood Markets Inc. may have performed poorly after its initial public offering, but it got some high-profile support from Cathie Wood.

LISTEN: Eric Balchunas, Senior ETF Analyst for Bloomberg Intelligence, discusses the latest on ETFs and Cathie Wood’s backing for Robinhood with Rishaad Salamat and Bryan Curtis on Bloomberg Daybreak Asia.

Wood’s flagship ARK Innovation exchange-traded fund (ticker ARKK) purchased almost 1.3 million shares of the company on Thursday, according to Ark Investment Management’s daily trading report. At Robinhood’s closing price of $34.82, that gives the ETFa more than $45 million stake.

Even after pricing the IPO at the low end of its range, Robinhood ended its first day down 8.4% from the offering price, the worst-ever performance for a U.S. debut of its size, according to ...

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