Cathie Wood’s ARK funds bought $65 million more of Robinhood stock
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Just Friday, Cathie Wood’s ARK fund bought another $65 million worth of Robinhood stock. The fund previously purchased 1.3 million stock issued by Robinhood.
According to ARK Innovation’s portfolio data, updated on Friday, the fund now owns 3.6 million shares of Robinhood worth $126 million — about 0.55% of the fund’s portfolio.
Cathie Wood, founder and head of ARK Invest, loves investing in innovative and disruptive companies. The top stocks of the ARK Innovation fund include Tesla (TSLA), Teladoc Health (TDOC) and Roku (ROKU). The fund has also been buying shares on cryptocurrency exchange Coinbase Global (COIN) since its IPO in April. And most recently, trading platform Robinhood (HOOD).
With its commission-free trades, Robinhood attracts a lot of young investors who are behind the so-called stock meme mania. They coordinate on social media platforms like Reddit to push up the prices of these stocks. The most notable are GameStop (GME) and AMC Entertainment (AMC).
However, despite Robinhood’s explosive user base, the market doesn’t seem to accept the company’s IPO. After debuting on Nasdaq for $38, the stock fell 8.4% to $34.82. The trading platform had a market valuation of $29 billion at the end of Thursday.
But as always, Cathie Wood’s faith in Robinhood will last. In Friday afternoon trading, Robinhood’s stock rebounded 5.5% to $36.73.