Cathie Wood's Wednesday Moves: Ark Invest Dumps Robinhood Stock

On Wednesday, Cathie Wood-led Ark Invest made a significant move by selling shares of Robinhood Markets Inc. HOOD.

The Robinhood Trade

Ark Invest’s ARK Next Generation Internet ETF ARKW fund sold 18,483 shares of Robinhood Markets Inc. HOOD on Wednesday. The transaction was valued at approximately $927,107, based on Robinhood’s closing price of $50.16. This sale occurs as Robinhood navigates a challenging market environment, influenced by economic indicators and potential regulatory shifts.

Recent reports have highlighted Robinhood’s vulnerability to economic fluctuations, particularly those affecting retail investors. A report from early January noted that Robinhood’s stock faced pressure due to a cooling U.S. labor market, which could impact its trading-dependent revenue model. The ADP National Employment Report indicated a slowdown in job growth, potentially affecting trading volumes on Robinhood’s platform.

Despite these challenges, Robinhood has been identified as a key player in the potential deregulation of the cryptocurrency sector. A Bernstein report positioned the brokerage as a top beneficiary of regulatory changes, suggesting a promising outlook for its growth. This dual narrative of economic challenges and regulatory opportunities frames Ark Invest’s decision to adjust its position in Robinhood.

Other Key Trades:

• Sold 61,235 shares of Accolade Inc. ACCD from the ARKG fund.
• Bought 307 shares of Deere & Co DE for the ARKQ fund and 93 shares via ARKX.
• Sold 307 shares of Elbit Systems Ltd ESLT from the ARKQ fund and 93 shares via ARKX.

This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal