Shares of Robinhood jumped as much as 11% Monday. On Friday, updates from Cathie Wood’s Ark Invest showed the firm picked up about $31.5 million worth of the stock. Robinhood’s stock has plunged over 60% since its IPO at $38 per share. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Shares of Robinhood jumped on Monday as Cathie Wood’s Ark Invest revealed it bought the dip following lackluster earnings from the popular trading app last week.
The stock was trading higher by 11%, at $14.14 as of 11:29 a.m. ET on Monday.
According to the asset manager’s trading updates, Wood’s flagship ARK Innovation ETF snapped up 1.95 million shares of Robinhood on Friday, and ARK Next Generation ETF and ARK Fintech Innovation ETF added more than 230,000 shares.
In total, Ark funds added about $31.5 million worth of Robinhood stock.
In its earnings report, the trading app forecasted first-quarter revenue of “less than $340 million,” far below Wall Street’s expectations of $448 million. Monthly active users declined by 8% from the prior quarter as the boom in retail trading that took place during the pandemic subsides.
Wood’s firm made the purchase shortly after Robinhood shares sank below $10. Since late October, the firm has continued to buy shares as the stock price dropped.
Wood’s ARK Innovation ETF has slumped to start 2022, down about 23% year-to-date, continuing a brutal period for the famed stock picker’s funds as high-growth tech stocks sell off.
At around $14 per share, Robinhood stock has fallen by about 60% from $38 per share at its IPO last July.