REUTERS/Dado Ruvic/IllustrationRobinhood soared up to 19% Tuesday, reaching a post-IPO record $45.Long-term investors such as Cathie Wood's Ark Invest are buying the online trading app.Ark Invest owns a stake of approximately $250 million in Robinhood since it went public last week.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Robinhood shares rose as high as 19% Tuesday, to a post-IPO record of $45 due to long-term investors such as Cathie Woods Ark Invest beginning to establish a position on the fintech platform.Robinhood's debut was rocky. Shares fell as much as 12% compared to its IPO price, $38 per share. Robinhood's IPO was unique because it allocated shares to its users, allowing retail investors access to the ground level. This access is usually reserved for institutional investors or their clients.Robinhood's user base is only 1%, but other investors seem more optimistic about the long-term prospects for the online trading app.Ark Invest owns a stake of nearly $250 million in Robinhood, since the company went public last week. Ark Invest owns over 6 million shares in Robinhood across its Disruptive Innovation, Next Generation Internet and Fintech Innovation ETFs.Robinhood is not for everyone. David Trainer of New Constructs, a Robinhood expert, argues that Robinhood is worth less than $9 billion. This represents a downside potential of over 75% compared to current levels.Trainer stated that Robinhood is facing a growing regulatory risk and that it was possible for the public to see Robinhood's stated goal of 'democratizing investing' as a scheme to lure them into gambling and speculative trading that will benefit Robinhood more than the individual investor.Markets Insider
