Cathie Wood's Ark Invest Defies Analysts And Bulks Up On Robinhood Shares

A slew of sell-side analysts lowered their price targets for Robinhood Markets, Inc. HOOD shares after the company reported underwhelming fourth-quarter results on Thursday.

Cathie Wood's Ark Invest, however, deemed it fit to add to its position.

What Happened: Ark Invest bought 2,447,100 shares of Robinhood on Friday, daily trade information from the money management firm showed. At Friday's closing price of $12.73, the total purchase price works out to $31.15 billion.

Ark Invest holds the stock in three of its funds, namely ARK ETF Trust - ARK Innovation ETF ARKK, ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF ARKF.

With the latest purchase, Robinhood accounts for 0.1926% of Ark Invest's flagship ARKK ETF. The top holding in the fund is Tesla, Inc. TSLA, which has an 8.07% weighting.

Related Link: Robinhood CEO Explains Why He's Resisting Calls For Accepting Shiba Inu

Why It's Important: Robinhood, which went public through a direct listing, has seen its share languish. The company priced the IPO at $38 apiece, with the shares beginning to trade on July 29, 2021.

The shares skyrocketed to a post-IPO high of $85 in the fifth session following the listing, but have pulled back notably from this level.

The fourth-quarter results, which revealed a sequential drop in monthly active users and a wider-than-expected loss, as well as the weak first-quarter revenue guidance, did little to lift the sagging stock.

Robinhood shares closed Friday's session up 9.65% at $12.73.

Related Link: Robinhood Adds Crypto Gift Capability To Platform: Now You Can Send Bitcoin, Doge Presents

Photo: Courtesy of Diverse Stock Photos on Flickr