Robinhood Tumbles as Holders File to Sell 98 Million Shares

(Bloomberg) — Robinhood Markets Inc. tumbled as much as 15% in premarket trading Thursday after shareholders filed to sell nearly 100 million shares less than a week after its initial public offering.

None of the proceeds will be received by the company, with the selling stockholders getting all of the funds from the sales, according to a filing with the U.S. Securities and Exchange Commission. Sellers include Andreessen affiliates and New Enterprise Associates.

The move comes just a day after shares in the zero-fee trading platform soared 50% as a flood of retail traders joined larger investors, such as Cathie Wood’s flagship ARK Innovation exchange-traded fund, in buying the stock.

Read more: Robinhood Surges as Retail Traders Join Wood to Power Rally

The stock had a lackluster trading debut last week, falling more than 3% in its first day of trading. Since then, its has gone on to rally for four straight days, including Wednesday’s surge that at one point reached as much as 82% and ballooned Robinhood’s market capitalization to a peak of $65 billion.

(Updates pricing throughout; An earlier version corrected the spelling of Robinhood in the headline)

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