Aofex

Cathie Wood’s ARK Invest Purchases Falling Robinhood Shares

UTC by Oluwapelumi Adejumo · 3 min read
Cathie Wood’s ARK Invest Purchases Falling Robinhood Shares
Photo: Shutterstock

Going by the daily trading data from Ark Investment Management, ARK’s purchase of Robinhood stock on Monday and Tuesday was worth $32.4 million.

Cathie Wood’s ARK Investment Management in hope of making a profit had increased its shares in Robinhood Markets Inc (NASDAQ: HOOD) stock a few days into the announcement of the firm’s quarterly revenue but ended up losing as the brokerage platform revealed that its earnings did not match expectations.

Available information shows that Ark exchange-traded funds expanded their Robinhood stock shares by purchasing 836,000 more shares, which is valued a little over $32 million, just two days to its third-quarter earnings released on Tuesday evening.

On Wednesday, Robinhood stock value plummeted by 10%,  nearing its Initial Price Offering (IPO) following a decline in the cryptocurrency transactions on the platform. The fall in the value of these shares hit the ARK purchase badly as it had just recently invested in the stock. Since the debut of Robinhood stock in July, ARK has been steadily increasing its holdings in the shares. 

Going by the daily trading data from Ark Investment Management, ARK’s purchase of Robinhood stock on Monday and Tuesday was worth $32.4 million. Bloomberg data reveals the estimate of ARK holdings in Robinhood shares is roughly 9.74 million, valued around $385 million, as of Tuesday’s market price. Notably, this places ARK as one of the top holders of the HOOD’s shares.

In this year alone, Cathie Wood’s leading fund, the ARK Innovation ETF (ARKK), has seen its worth drop by nearly 5%, while the likes of the S&P 500 saw gains of over 20%. However, from August till date, Robinhood’s shares have slid by 58%, dealing a strong blow to ARK’s bet on the future of the stock trading platform.

Robinhod stocks are currently trending on trader chat room Stocktwits with retailers discussing buying the shares of the broker. As it stands, the stock ranks amongst the most purchased assets on Fidelity’s platform alongside that of electricity carmaker, Tesla Inc.

An interesting fact is that Robinhood’s IPO was trading for $38 when it debuted on the Nasdaq exchange. However, as of today, the shares have dipped from a peak of $85, and are now trading for $35 which is below the price it debuted on exchange.

It is worth adding that Robinhood’s 3rd quarter revenue declined because of a slide in the platform’s crypto trading activities. The company had recorded a huge leap in its 2nd quarter revenue that surged largely due to its crypto revenue.

Robinhood became popular in the market for its role in the bull run of the popular meme coin, Dogecoin, earlier in the year. The platform had ascribed majority of its earlier revenue to the boom it witnessed in trading on its platform during the said period.

Business News, Investors News, Market News, News, Stocks
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

Related Articles