Robinhood sinks as shareholders file to sell 98 million shares, taking the wind out of massive 2-day rally

• Robinhood tumbled 15% on Thursday after major shareholders filed to sell 98 million shares, Bloomberg reported.
• Sellers included Andreessen Horowitz affiliates, New Enterprise Associates, and Ribbit Capital.
• The downturn comes after Robinhood staged a two-day rally, soaring as much as 126% on Tuesday and Wednesday.

Shares of Robinhood tumbled 15% on Thursday after major shareholders filed to sell 98 million shares, taking the wind out of a massive two-day rally less than a week since the popular trading app made its Nasdaq debut.

Shareholders included Andreessen Horowitz affiliates, New Enterprise Associates, and Ribbit Capital, according to the company's S-1 filing, first reported by Bloomberg. .

The downturn came after Robinhood staged a two-day rally of as much as 126% on Tuesday and Wednesday. At one point on Wednesday, the stock traded as high as $85 per share, prompting at least three trading halts.

Around 176 million shares were traded on Wednesday, which Neil Campling, head of research at Mirabaud, called "remarkable" given the company's float is just 55 million shares.

"We have no view on the stock for now," he said in a note. "As with other similar situations, we prefer to wait for the liquidity to normalise and the dust to settle and then see things like double/triple tops and so on."

The frenzied buying this week, including by Cathie Wood's Ark Invest, follows a tepid debut on July 29 with shares falling as much as 12% in their first day of trading.