What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) jumped 6.3% in the afternoon session after Cathie Wood's Ark Invest purchased approximately $21.3 million worth of the company's stock, signaling renewed confidence in the online brokerage. The investment firm added roughly 167,400 shares through two of its exchange-traded funds, the Ark Innovation ETF (ARKK) and the ARK Next Generation Internet ETF. This significant buy-in was seen as a positive sign from a prominent institutional investor. The purchase also highlighted Robinhood's expanding focus on the crypto market, as the company continued to pursue blockchain initiatives and add new digital assets.
Is now the time to buy Robinhood? Access our full analysis report here.
What Is The Market Telling Us
Robinhood’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 6.9% on the news that a retreat in the price of Bitcoin dragged down several cryptocurrency-tied stocks. The move was part of a broader downturn in the crypto sector, as Bitcoin's price fell from nearly $112,000 to around $108,000. This drop impacted other companies with exposure to digital assets, including Coinbase Global (COIN), which also sank about 7%. Bitcoin-related firms such as MicroStrategy (MSTR) and MARA Holdings (MARA) experienced declines as well. This negative trend occurred within a generally cautious market, as disappointing earnings reports from other sectors had already dampened investor sentiment.
Robinhood is up 242% since the beginning of the year, but at $134.97 per share, it is still trading 11.5% below its 52-week high of $152.46 from October 2025. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,876.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
