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

Benzinga ·  Jan 31 22:55

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 (NASDAQ: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.

The Tesla Trade

Ark purchased 6,649 Tesla shares through ARK Innovation ETF (NYSE:ARKK) and ARK Next Generation Internet ETF (NYSE: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 (NASDAQ: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 (NYSE:TWLO) and UiPath Inc (NYSE:PATH), adjusting its portfolio in the technology sector.

  • Significant investments were made in Ginkgo Bioworks Holdings Inc (NYSE:DNA) and Teradyne Inc (NASDAQ:TER), indicating a focus on biotech and robotics.

Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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