over 2 years ago • 1 min
As retail-focused brokerage Robinhood hit the stock market on Thursday, few of the small investors it courts as customers appeared hugely interested.
Retail investors bought $18.9 million worth of Robinhood shares on its first day as a public company, according to data from VandaTrack. That’s nothing to sniff at, sure, but it pales in comparison to the sums poured into Snap, Uber, and Didi on their debuts.
Robinhood’s shares tumbled 8.4% on their first day of trading, making it the worst ever initial public offering (IPO) among similarly sized US deals. Despite that weakness – which compares to an average 39% first-day jump among all US IPOs this year – it appears small investors were still reluctant to buy the dip.
To be fair to Robinhood, US-based retail investors with a Robinhood account had already been offered the chance to buy stock as part of the IPO process – before the first day of trading. Perhaps drawing so many small investors into the IPO removed some of the first-day fever seen by many newly listed companies.
And despite the gloomy headlines, one high-profile investor snapped up some stock at least. Cathie Wood’s Ark Investment Management bought 1.3 million shares for its Ark Innovation exchange-traded fund, according to an email from the firm. Robinhood now makes up 0.2% of the fund.
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