Cathie Wood’s ARK Invest bought approximately $9.1 million worth of Robinhood Markets (HOOD) shares on Wednesday, making it the investment firm’s largest purchase of the stock since late April. On April 29, ARK acquired roughly $39 million in Robinhood shares.
Data published by ARK’s trading desk showed that the firm purchased 99,418 shares through three exchange-traded funds (ETFs). The transaction marked its first addition to Robinhood holdings since September 8.
The latest purchases were allocated across the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Blockchain & Fintech Innovation ETF (ARKF).
Based on Robinhood’s closing price of $91.43 on Wednesday, the shares were worth around $9.1 million. HOOD declined 3.3% during the session, extending its losses over the previous month to more than 23%.
ARK’s latest move reversed its selling activity earlier in October. From October 6 through October 9, the firm disposed of approximately $47.5 million in Robinhood shares, when the stock’s closing price ranged from $107 to $112. Wednesday’s purchase signaled renewed interest following those sales.
The investment came after Robinhood reported third-quarter results showing a significant slowdown in its cryptocurrency business. Crypto transaction revenue dropped 55% year over year to $120 million, while trading volume fell 38% to $50 billion.
However, stronger results in other segments helped the brokerage record its highest quarterly revenue to date. Total revenue reached $1.42 billion, an increase of 12% compared with the same period last year.
Prediction markets delivered $173 million in revenue, more than six times the year-earlier figure and surpassing the company’s crypto trading revenue. Options revenue also climbed 31% to $399 million.
Despite the revenue record, Robinhood failed to meet several analyst expectations. Revenue came in slightly below forecasts, and earnings per share reached $0.51, missing the consensus estimate of $0.55. Net income declined 14% to $476 million.
Selling pressure persisted in premarket trading on Thursday, with HOOD shares falling another 1.88% to $89.70.
