Bill Gates, already the world’s second-richest person, got an added boost as his investment in used-car platform Vroom Inc. more than doubled on the company’s first day of trading.
Shares of New York-based Vroom soared 118% on Tuesday, lifting the value of Gates’s roughly 6% holding by more than $175 million. The stock climbed again Wednesday, advancing 16% to $55.44 at 9:48 a.m. in New York.
Gates, 64, who owns the stake through Cascade Investment, has a net worth of $115.1 billion, according to the Bloomberg Billionaires Index, a ranking of the world’s 500 richest people. The Microsoft Corp. co-founder trails only Amazon.com Inc.’s Jeff Bezos, whose fortune has increased by $41.3 billion this year and now stands at $156.2 billion.
Vroom, which sells used vehicles online, is also backed by L Catterton, General Catalyst Partners and T. Rowe Price Associates.
It was the second straight day of eye-popping returns for investors in the automotive industry. On Monday, shares of Tesla Inc. competitor Nikola Corp. more than doubled, and the maker of hydrogen-powered trucks climbed an additional 8.8% Tuesday, boosting founder Trevor Milton’s net worth to $9.8 billion.
While demand for used cars has weakened during the pandemic, Vroom sold more units in March and April than in any previous two-month period, according to filings. Last week, Nikola said pre-orders for its vehicles topped $10 billion and that it expects to start generating revenue in 2021.
–With assistance from Crystal Tse and Ben Stupples.
This article was provided by Bloomberg News.
