(Bloomberg) — It’s paid off for those betting against Robinhood Markets Inc., the brokerage popular with the meme-stock traders who once waged war on short-sellers.
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Investors who have sold borrowed shares in the company, anticipating that they can buy them back after they fall, have seen $253 million in mark-to-market gains since mid-August, according to S3 Partners.
The brokerage, a favorite of those who made day trading a pandemic-era pastime, has seen its shares tumble nearly 70% from their August 4 peak. The stock hasn’t traded above the $38 price of its July initial public offering in about three weeks.
The estimated mark-to-market gains account for the $224 million in financing costs tied to the borrowed shares, according to Matthew Unterman, a director at S3.
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