Robinhood Sinks 28% After Early Investors File to Sell Stock
- Stock fell to $50.97 on Thursday after wild rally Wednesday
- Company will not receive proceeds from the share sales
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Robinhood Markets Inc. tumbled Thursday after early investors filed to sell nearly 100 million of their Class A common shares less than a week after its initial public offering.
The trading platform’s stock sank 28% to $50.97 as investors proposed to sell up to 97.88 million of shares over time. None of the proceeds will be received by Robinhood, with the selling stockholders getting all of the funds from the sales, according to a filing with the U.S. Securities and Exchange Commission.