Cathie Wood Splurges $10.6M On Robinhood Stock Even As Google Parent Cut Stake In Trading App By Over 87%

Ark Invest bought a good chunk of Robinhood Markets, Inc. HOOD shares, capitalizing on its post-earnings dip. Interestingly, a 13F form filed by Alphabet, Inc. GOOGL GOOG this week showed that the search giant liquidated much of its Robinhood Holdings.

What Happened: Cathie Wood’s Ark, through its three funds, amassed 933,663 shares of Robindhood in two sessions this week.

Ark's flagship Ark Innovation ETF ARKK, as well as Ark Fintech Innovation ETF ARKF and Ark Next Generation Internet ETF ARKW added Robinhood shares.

On Thursday, these ETFs purchased 482,281 shares valued at $5.57 million, and in the very next session, Ark funds bought an incremental 451,382 shares valued at $5.09 million. Ark's Robinhood buy for the week is cumulatively valued at $10.66 million.

Robinhood, which democratized trading with its zero-commission option, reported late Wednesday better-than-expected second-quarter bottom-line results and revenue. Some key user metrics such as monthly active users and assets under custody dropped, sending the shares down by over 7% on Thursday.

See Also: How To Buy Stocks On Robinhood

Robinhood fell an incremental 2.25% on Friday before ending at $11.82, according to Benzinga Pro data. 

Robinhood has a 2.78% weighting in Wood's flagship ARKK fund.

Alphabet Cuts: A 13F form filed by Google parent Alphabet this week showed that the company substantially reduced its stake in Robinhood. At the end of the second quarter, Alphabet held 612,214 Robinhood shares valued at $6.11 million.

This marked a drastic cut from the 4.93 million shares Google held at the end of the March quarter, with the value of the then holding at $47.86 million.

Robinhood shares have come notably off their post-IPO intraday high of $85 reached on Aug. 4, 2021.

Related Link: Trading Strategies For Robinhood Stock Heading Into Q2 Earnings

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