Cathie Wood’s ARK Invest purchased approximately $9.1 million in Robinhood Markets (HOOD) shares on Wednesday, marking its largest acquisition of the stock in six months. The firm’s previous major purchase came on April 29, when it bought around $39 million worth of shares.
Trading data released by ARK’s trading desk showed that the investment involved 99,418 shares across three exchange-traded funds (ETFs). It was ARK’s first purchase of Robinhood stock since September 8.
The shares were distributed among the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Blockchain & Fintech Innovation ETF (ARKF).
Using Robinhood’s Wednesday closing price of $91.43, the latest purchase was valued at roughly $9.1 million. However, HOOD shares dropped 3.3% during the session, pushing their one-month decline beyond 23%.
The acquisition represents a shift in ARK’s recent trading strategy. Between October 6 and October 9, the firm sold approximately $47.5 million worth of Robinhood shares as the stock closed between $107 and $112. Wednesday’s move marked a return to buying after those sales.
The purchase came shortly after Robinhood released its third-quarter earnings, which highlighted significant weakness in its cryptocurrency operations. Revenue from crypto transactions fell 55% year over year to $120 million, while trading volume in the segment declined 38% to $50 billion.
Despite the downturn in crypto activity, growth across other businesses helped Robinhood achieve record quarterly revenue of $1.42 billion, up 12% from the previous year.
Prediction markets contributed $173 million in revenue, more than six times the year-earlier figure and above the company’s crypto trading revenue. Options revenue also rose 31% to $399 million.
Nevertheless, the company’s financial results fell short of market expectations. Quarterly revenue missed analysts’ estimates slightly, while earnings per share came in at $0.51 against the consensus forecast of $0.55. Net income declined 14% to $476 million.
Robinhood shares remained under pressure after the regular session. During premarket trading, HOOD fell a further 1.88% to $89.70, extending the stock’s recent losses.
