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Ark Invest buys invests $80M in Robinhood as stocks take an 11% dip | Invezz

source-logo  invezz.com 29 October 2021 04:43, UTC

Robinhood shares recently took a major dive after it revealed that its Q3 revenues had decreased following reduced trading activities. However, Ark Invest has taken advantage of the dip and purchased $80M worth of Robinhood shares.

Ark Invest Buys the Dip

Ark Invest is an asset management firm that is led by Cathie Wood. Daily trading data shows that the firm purchased 2.24 Robinhood shares after the shares took a major price dip.

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The firm bought these shares across three of its ETF funds. The majority of the shares went to the ARK Innovation ETF. Robinhood shares now account for around 1.33% of the entire ETF.

The Robinhood share dip is not the only purchase that Ark Invest did. The firm also purchased $60 million worth of Twitter shares. The Twitter shares dropped by around 11% after the social media company reported reducing user growth.

Earlier this week, Ark Invest also sold Tesla stocks. The firm disposed of 57,106 of the electric car manufacturing form worth around $59 million during this sale. These shares were sold at a profit as Tesla shares have been on a major price gain, enabling the company to reach $1 trillion in valuation.

Robinhood Stocks Take Major Dive

On October 27, Robinhood released its financial results for the third quarter of 2021. The results show that revenues during this period dropped by around 78% from the previous highs of $233 million reported during the second quarter. Moreover, its shares dropped to below $38, which was lower than its IPO price.

Since the beginning of the week, the stock has shed around 11%. It dropped from $39.85 on Monday to $35.47 by market close on Thursday.

Despite the declining share value, Ark Invest remains optimistic about Robinhood’s future success. The exchange recently announced the launch of its crypto wallet. The waitlist for this wallet has surpassed 1 million people, showing that the exchange’s user base is still big.

The drop in Robinhood’s shares has been attributed to declined interest in meme coins. The exchange-listed Dogecoin (DOGE/USD) earlier this year, which saw a major influx of users. However, with the hype for the meme coin dying down, the exchange’s revenues have dropped significantly.

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