ARK Invest Snaps Up Robinhood Shares After 23% Drop in Biggest Buy in Six Months

Cathie Wood’s ARK Invest purchased approximately $9.1 million worth of Robinhood Markets (HOOD) shares on Wednesday, marking its biggest investment in the stock since April 29, when the firm bought roughly $39 million worth.

According to trading data shared by ARK’s trading desk, the investment involved 99,418 shares distributed across three exchange-traded funds (ETFs). It was the firm’s first Robinhood purchase since September 8.

The shares were added to the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Blockchain & Fintech Innovation ETF (ARKF).

Based on Robinhood’s Wednesday closing price of $91.43, the purchase was worth approximately $9.1 million. HOOD shares fell 3.3% during the session, extending their losses over the past month to more than 23%.

The latest acquisition marks a reversal from ARK’s earlier trading activity. Between October 6 and October 9, the investment firm sold approximately $47.5 million in Robinhood shares, when the stock traded between $107 and $112 at closing. Wednesday’s purchase signals a return to buying after that period of selling.

The move followed Robinhood’s third-quarter earnings announcement, which revealed a sharp slowdown in its cryptocurrency business. Revenue from crypto transactions dropped 55% year over year to $120 million, while crypto trading volume declined 38% to $50 billion.

However, stronger performance in other business segments helped offset some of the weakness. Robinhood reported record quarterly revenue of $1.42 billion, representing a 12% annual increase.

Prediction markets generated $173 million in revenue, more than six times the amount recorded a year earlier and exceeding revenue from cryptocurrency trading. Meanwhile, options revenue increased 31% to $399 million.

Despite the overall revenue growth, Robinhood’s results fell short of Wall Street expectations. Revenue came in slightly below analysts’ forecasts, while earnings per share of $0.51 missed the consensus estimate of $0.55. Net income also declined 14% to $476 million.

The selling pressure continued in premarket trading, with HOOD shares falling another 1.88% to $89.70.