Robinhood (HOOD) stock jumps 40% on news of crypto exchange FTX CEO's 7.6% stake
Robinhood is no stranger to getting bailed out by billionaires, and FTX CEO Sam Bankman-Fried is betting on the app to turn things around.
Robinhood's stock has been in the dumps for most of 2022, but the stock jumped over 40% in after-hours trading on news that crypto exchange FTX CEO Sam Bankman-Fried has taken a 7.6% stake in the downtrodden investing app.
![The 15 minute bar chart shows the violent move to the upside in shares of Robinhood (HOOD) in the after-hours session.](https://d1lss44hh2trtw.cloudfront.net/resize?type=webp&url=https%3A%2F%2Fshacknews-www.s3.amazonaws.com%2Fassets%2Feditorial%2F2022%2F05%2Frobinhood-hood-15-minute-stock-chart-may-12-2022-sam-fried-ftx-stake.png&width=986&sign=cw7XJfoYcUuUL0Jfvai0rmgYZ_RMhmwvhBb6IZ2Phw4)
Some Twitter accounts who post in all caps initially falsely reported that mutual fund juggernaut Fidelity was the company investing in Robinhood, but I was able to refute that claim by actually reading the 13D filing with the SEC. What a concept, I know. The confusion likely came from the filing with the company name "Emergent Fidelity Technologies Ltd." For a jaboofer that tweets in all caps, it is an easy mistake to make, because it requires reading before tweeting out nonsense.
![Screenshot of a deleted @unusualwhales tweet claiming Fidelity had taken a stake in Robinhood.](https://d1lss44hh2trtw.cloudfront.net/resize?type=webp&url=https%3A%2F%2Fshacknews-www.s3.amazonaws.com%2Fassets%2Feditorial%2F2022%2F05%2Frobinhood-hood-ftx-sam-fried-stake-13d-stock-jumps-unusual-whales-deleted-tweet.jpg&width=986&sign=GzPb_mesryk_W6B8bMt2DMjaChIXjV_TW0Kc7B_izZo)
Robinhood's stock has been in the dumps for the past few months, and things got materially worse when the company reported absolutely atrocious Q1 2022 earnings results. Even after today's after-hours pop, HOOD shares are down over 87% from the high set last year. It seems that FTX CEO Sam Bankman-Fried is trying to bottom pick Robinhood's stock, and his sizable $56 million bet is certainly a vote of confidence. With volatility crippling many crypto exchanges this week, perhaps this is a move to diversify to another sinking ship? We will just have to wait and see if investing in Robinhood is dumber than running a crypto exchange.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
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Asif Khan posted a new article, Robinhood (HOOD) stock jumps 40% on news of crypto exchange FTX's 7.6% stake
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Who?
Robert McElhenney III (/ˈmækəlhɛni/; born April 14, 1977) is an American actor, filmmaker and businessman. He is best known for his role as Ronald "Mac" McDonald on the FX/FXX comedy series It's Always Sunny in Philadelphia (2005–present), which he created and co-developed and on which he serves as an executive producer, co-writer, and occasional director. He is also known for his role as Ian Grimm on the Apple TV+ comedy series Mythic Quest (2020–present), which he co-created and on which he serves as a co-writer and executive producer.
https://en.wikipedia.org/wiki/Rob_McElhenney
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https://i.imgur.com/ESuJFHN.png
-76% since I bought. -
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