Cathie Wood's ARK Invest buys $9.1 million in Robinhood shares after 23% slump
ARK Invest adds to Robinhood stake after steep decline
Cathie Wood's ARK Invest bought about $9.1 million worth of Robinhood shares on Wednesday, October 29, 2026. This was the firm's largest purchase of the stock in six months, since it bought roughly $39 million on April 29.
The purchase came after Robinhood's stock (ticker: HOOD) fell sharply. The stock dropped 3.3% on Wednesday, extending its one-month decline to more than 23%.
Key numbers from the trade
- ARK Invest added 99,418 Robinhood shares across three of its exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Blockchain & Fintech Innovation ETF (ARKF).
- This was ARK's first purchase of Robinhood shares since September 8, 2026.
- The purchase was valued using Robinhood's closing price of $91.43 on Wednesday.
- Earlier in October, from October 6 to October 9, ARK had sold about $47.5 million of Robinhood shares when the stock was trading between $107 and $112.
What is known about the purchase
The purchase followed Robinhood's third-quarter earnings report, which showed a steep drop in crypto-related revenue. Crypto transaction revenue fell 55% from a year earlier to $120 million. Crypto trading volume also dropped 38% to $50 billion.
Despite the decline in crypto revenue, Robinhood posted record total revenue of $1.42 billion, up 12% from a year earlier. Growth came from other parts of the business. Prediction markets generated $173 million, more than six times the year-earlier figure and more than the crypto trading business. Options revenue rose 31% to $399 million.
However, revenue came in just below analysts' estimates. Earnings per share of $0.51 missed the consensus estimate of $0.55, and net income fell 14% to $476 million.
What remains unclear
The report does not explain ARK Invest's reasoning for buying after selling earlier in October. The firm's future trading plans for Robinhood shares are also not stated.
Why this trade stands out
The purchase shows ARK Invest is willing to increase its stake in Robinhood after the stock fell sharply and after the company reported a steep drop in crypto revenue. The buying reverses ARK's selling earlier in the month.
What happened after the purchase
According to the report, Robinhood shares continued to decline in premarket trading after Wednesday's purchase. The stock was down 1.88% to $89.70.
Sources
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