Bill Gates Among Big Winners With Vroom Doubling in Debut

(Bloomberg) -- 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.

Bill Gates Among Big Winners With Vroom Doubling in Debut

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.

Bill Gates Among Big Winners With Vroom Doubling in Debut

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.

©2020 Bloomberg L.P.

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