Cathie Wood participates in the initial public offering (IPO) of Robinhood.
In the rapidly evolving world of online trading, Robinhood, the commission-free brokerage platform, has been making headlines. The platform, which gained significant traction during the COVID-19 pandemic, debuted on Nasdaq under the ticker symbol HOOD last week. However, its first day of trading saw a drop of more than 8%, and the stock is currently trading around $34.50 per share, still below its IPO price.
Robinhood's initial public offering (IPO) aimed to raise a total of $2.1 billion. Yet, the interest from its customers was lower than anticipated, leading to a somewhat muted debut. Despite this, the platform is promoted as a contribution to the "democratization of investing."
One notable investor in Robinhood post-IPO was Cathie Wood, the renowned US investor who achieved legendary status for her success during the pandemic with the funds of her investment company Ark. Wood purchased 1.3 million shares of Robinhood in a $45 million deal during the IPO. News of her investment boosted the stock's price on Friday last week.
However, Cathie Wood's investment approach with Robinhood after its IPO involved early backing followed by gradual selling amid portfolio realignment. ARK Invest, Wood's firm, initially invested in Robinhood but has significantly reduced its holdings, selling shares multiple times in 2025. In July, ARK sold 58,504 shares worth about $5.53 million, and in early August, they sold an additional 12,613 shares valued around $1.3 million, despite regulatory developments that could potentially benefit Robinhood.
Robinhood's stock has experienced substantial gains since its IPO, surging approximately 165% year-to-date as of mid-2025. However, Wall Street consensus from ARK's trades points to a moderate buy rating with an average price target indicating a 19.1% downside from current levels, reflecting some caution.
The rise of Robinhood has not been without controversy. Critics like legendary investor Charlie Munger warn of a dangerous new culture of gambling and speculation that platforms like Robinhood are fueling. Users of the Robinhood platform have coordinated in investment forums to buy certain stocks and artificially inflate their prices, such as GameStop and AMC stocks.
Despite these challenges, Robinhood continues to be a significant player in the online trading landscape. Wood, with her reputation as a gifted stock picker, continues to regularly appear on social media, and her investment decisions are closely watched by the financial community. As Robinhood navigates the market, it will be interesting to see how its stock performs in the coming months.
- Cathie Wood, the famed US investor who gained acclaim during the pandemic, initially backed Robinhood with a $45 million investment during the IPO, but later gradually sold shares, even amid regulatory developments that could potentially benefit the company.
- Despite concerns raised by critics like Charlie Munger about a culture of speculation, Robinhood, led by investments like that of Cathie Wood, remains a dominant force in the online trading business, with its stock showing a 165% gain since the IPO and a moderate buy rating from Wall Street.
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