coindesk.com
Cathie Wood’s $ARK Invest bought about $9.1 million of Robinhood Markets HOOD shares Wednesday, its largest purchase of the stock since buying roughly $39 million worth on April 29.
The firm added 99,418 shares across three exchange-traded funds (ETFs), its first purchase since Sept. 8, according to trade data shared by its trading desk.
The purchases were spread between the $ARK Innovation ETF (ARKK), the $ARK Next Generation Internet ETF (ARKW) and the $ARK Blockchain & Fintech Innovation ETF (ARKF).
The purchase is valued using Robinhood’s Wednesday closing price of $91.43. The stock fell 3.3% that day, broadening its one-month decline to more than 23%.
$ARK had been selling earlier in the month, offloading about $47.5 million of Robinhood shares from Oct. 6 through Oct. 9, when the stock closed between $107 and $112. Wednesday’s addition reversed that direction.
The buying followed Robinhood’s third-quarter earnings report, which showed crypto transaction revenue fell 55% from a year earlier to $120 million. Crypto trading volume dropped 38% to $50 billion.
Growth elsewhere helped the brokerage post record total revenue of $1.42 billion, up 12%, with prediction markets generating $173 million, more than six times the year-earlier figure and more than its crypto trading business, and options revenue rising 31% to $399 million.
Revenue however came in just below analysts' estimates and earnings per share of $0.51 missed the $0.55 consensus, as net income fell 14% to $476 million.
HOOD’s decline has deepened in premarket trading, as the shares are down 1.88% to $89.7.
