Cathie Wood’s ARK Invest boosted its position in Robinhood Markets, buying roughly $12.7 million (about $13 million) of stock after the trading app was selected for a new government-backed savings program.
Regulatory filings show ARK purchased Robinhood shares across multiple ETFs: ARK Innovation (ARKK) added 132,116 shares, ARK Next Generation Internet (ARKW) bought 33,607 shares, and ARK Fintech Innovation (ARKF) picked up 16,918 shares. The combined 182,641 shares were valued near $69.65 per share at the close.
The buys came after the U.S. Treasury named Robinhood the brokerage and initial trustee for the so-called “Trump Accounts,” a tax-advantaged investment program for children. Under the plan, eligible U.S. citizens born between Jan. 1, 2025 and Dec. 31, 2028 would receive a $1,000 government contribution to their accounts.
BNY will act as financial agent to manage the initial accounts and assist in building the Trump Accounts app, while the Treasury will retain control over the app and initial operations. Robinhood has also pledged to match the $1,000 government contribution for eligible children of its employees.
Market reaction was immediate: Robinhood shares closed the regular session around $69.65, slightly down for the day, then rose in after-hours trading to roughly $74.92, a gain of more than 7.5%. Despite the bounce, the stock is down about 38% year-to-date.
Separately, Robinhood’s board last month approved a $1.5 billion share-repurchase program spanning three years, combining $1.1 billion in new capacity with carryover from a prior authorization. The buyback is intended to support the stock following a difficult stretch for both equities and crypto markets.
On recent results, Robinhood posted Q4 revenue of $1.28 billion, missing analyst estimates of $1.34 billion. Crypto revenue fell 38% to $221 million. Net income declined 34% to $605 million, while earnings per share came in at $0.66, modestly above expectations.
The ARK purchases mark the fund’s first Robinhood buys in almost a month, aligning a fresh stake with the company’s new role in the government savings rollout and recent corporate actions aimed at shoring up shareholder value.
