Widely followed investor Cathie Wood remains a holder of Robinhood (HOOD) even as the threat of a clampdown on payment for order flow by regulators looms as a key risk.
The founder, CEO and CIO of Ark Invest said in an exclusive interview on Yahoo Finance Live that Robinhood is currently a 1% holding for her firm.
Wood sent the market for Robinhood’s stock into a tizzy in early August after she revealed purchases of the trading platform’s stock after a disappointing IPO in late July. Shares quickly skyrocketed to an intraday high of $85 on Aug. 4, according to Yahoo Finance Plus data as traders that hand-on every call from Wood’s firm embraced the purchase.
“We’re looking at the payment for order flow controversy. We know that chairman [Gary] Gensler at the SEC is looking at that. That’s a large percentage of Robinhood’s revenues. But we actually think that not much is going to change there because the system has been so good from an execution point of view for the end investor. So we would be surprised to see a lot of change on that front. But again, we are in a situation where we have to listen to what the SEC is saying,” Wood told Yahoo Finance Live.