Thursday, September 18, 2025

Robinhood Sent Tumbling as Stockholders Prepare to Sell 97.9 Million Shares

Following a dismal IPO that saw Robinhood’s shares crater on the first day of trading, the discount broker soon regained its momentum, surging by 50% on Wednesday after an onslaught of retail traders joined institutional investors including Cathie Wood’s Ark Innovation, and piled into the new stock.

However, the optimistic rebound didn’t last long, because come Thursday morning, Robinhood plummeted by nearly 15%, after shareholders filed to sell up to 97.88 million shares of the trading app, less than one week after its Nasdaq debut. Losses have continued in after hours trading, with the name tumbling as much as 27% at the time of writing. According to an SEC filing, Robinhood revealed that it will not receive any of the proceeds from the sale of its Class A common stock, because the offering is part of an automatic conversion of convertible notes held by the stockholders.

The selling stockholders include various venture capital companies that came to Robinhood’s aid when the trading app was caught in the midst of a historic meme stock frenzy earlier in 2021. Following the filing, the shareholders will be allowed to sell their shares at whatever price they choose, and at whatever opportunity they want.


Information for this briefing was found via the SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Robinhood To Face Increased Competition From Acorns Grow, A Spare-Change Investing Platform

Reflecting the dramatic change in market mood over the last handful of months from embracing...

Monday, January 10, 2022, 03:32:00 PM

Robinhood Failed to Report All Trade Executions to Public Data Feed

Robinhood appears to be embroiled in yet another potential controversy, after it failed to disclose...

Sunday, April 11, 2021, 12:09:00 PM

Robinhood Revenues Likely To Decline Markedly on Sequential Basis

Robinhood Markets Inc. (NASDAQ: HOOD) plans to release 3Q 2021 earnings on October 26, and...

Saturday, October 16, 2021, 09:00:00 AM

Robinhood’s Q1 Earnings Overshadowed By Looming Payment For Order Flow Changes

Yesterday after the close, Robinhood Markets, Inc. (NASDAQ: HOOD) reported constructive 1Q 2023 earnings results....

Thursday, May 11, 2023, 07:23:00 AM

Robinhood: Judge Opens The Door To Class Action Lawsuit

The risks that Robinhood Markets, Inc. (NASDAQ: HOOD) faces from its use of a payment...

Saturday, January 21, 2023, 02:51:00 PM