ARK Invest Buys Robinhood Shares After Steep One Month Slide

ARK Invest bought about $9.1 million of Robinhood stock on Wednesday, its largest buy of the company since a roughly $39 million purchase on April 29. The firm added 99,418 shares across three funds: ARK Innovation, ARK Next Generation Internet and ARK Blockchain & Fintech Innovation. It was the first purchase since Sept. 8, and it reversed earlier selling, when ARK sold around $47.5 million of shares from Oct. 6 to Oct. 9 with the stock trading between $107 and $112.

Why Robinhood Shares Have Dropped

The stock fell 3.3% on Wednesday to close near $91.43, extending its one-month loss to more than 23%. Premarket trading pushed it lower again, to about $89.70. The pressure followed third-quarter results in which crypto transaction revenue fell 55% to $120 million and crypto trading volume dropped 38% to $50 billion.

Prediction Markets and Options Lift Revenue

Total revenue hit a record $1.42 billion, up 12%, helped by prediction markets bringing in $173 million, more than six times last year’s level and above its crypto trading business. Options revenue rose 31% to $399 million. Even so, revenue landed just under estimates, and earnings per share of $0.51 missed the $0.55 consensus, while net income fell 14% to $476 million.