Cathie Wood's Ark Loads Up On $3.3M Worth Of Robinhood Shares, Continues Its Tesla Stock Purchase Spree

On Wednesday, Cathie Wood-led Ark Invest made a significant move in the stock market, purchasing $3.3 million worth of shares in Robinhood Markets Inc HOOD. This decision comes amidst a period of strategic shifts and financial growth for Robinhood, marking another bold step by Ark Invest in supporting innovative companies.

The Robinhood Trade

Ark Invest purchased a total of 305,674 Robinhood shares through its flagship ARKK and ARKW. Robinhood shares closed 2.54% lower at $10.74 on Wednesday.

The firm’s acquisition of Robinhood shares reflects a growing confidence in the company’s revamped strategy and financial trajectory. A recent analysis of Robinhood’s upward financial trajectory highlights the firm’s potential in the evolving fintech landscape.

Dan Dolev, an analyst from Mizuho, suggests that the recent introduction of a 3-cent pass-through charge per option trading contract by HOOD, as disclosed in the fiscal third quarter 2023 10-Q, might have the potential to increase the 2024 adjusted EBITDA by 5% or more. the analyst has a buy recommendation with a price target of $15 for the stock.

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The Tesla Trade

Ark purchased 6,649 Tesla shares through ARK Innovation ETF ARKK and ARK Next Generation Internet ETF ARKW on Wednesday. The transaction was worth $1.24 million. The shares of the Electric Car manufacturer closed at $187.29, declining 2.24% over a 24-hour period.

In addition to Robinhood, Ark Invest’s continued investment in Tesla Inc TSLA is noteworthy. With Wood’s vocal support for CEO Elon Musk and the company’s innovative approach, this trade underscores Ark’s belief in Tesla’s long-term value and leadership in the electric vehicle market.

In the aftermath of Tesla’s fourth-quarter double miss, the Wood-led firm has consistently acquired Tesla shares over the course of the five subsequent sessions. Despite the setbacks, Ark maintains a positive outlook on Tesla, anticipating the stock to reach $2,000 by 2027. This optimistic valuation is largely attributed to the potential success of the robo-taxi service.

During a recent CNBC interview, Wood was questioned about Musk’s request for a 25% ownership stake. In response, Wood praised Musk as a visionary leader, referring to him as a “renaissance man” and the inventor of our age.

Wood expressed her concern that contemporary investors are overly fixated on short-term gains, prioritizing immediate profits, dividends, and buybacks instead of recognizing and investing in significant opportunities available at present.

Other Key Trades:

• The firm sold shares in Twilio Inc TWLO and UiPath Inc PATH, adjusting its portfolio in the technology sector.
• Significant investments were made in Ginkgo Bioworks Holdings Inc DNA and Teradyne Inc TER, indicating a focus on biotech and robotics.

Photo courtesy of Ark Invest.

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