Cathie Wood’s ARK Invest boosted its stake in Robinhood Markets, buying roughly $13 million of the stock after the trading app was chosen for a new government-backed savings program.
REGULATORY FILINGS
ARK’s latest disclosures show purchases of Robinhood (HOOD) across several funds. The ARK Innovation ETF (ARKK) added 132,116 shares, the ARK Next Generation Internet ETF (ARKW) bought 33,607 shares, and the ARK Fintech Innovation ETF (ARKF) purchased 16,918 shares. The combined 182,641 shares equate to about $12.7 million at a closing price near $69.65 per share. This is ARK’s first Robinhood buy in almost a month.
ROBINHOOD TAPPED FOR TRUMP ACCOUNTS
The buying followed a Treasury announcement naming Robinhood as the brokerage and initial trustee for “Trump Accounts,” a new tax-advantaged investment program for children. The Treasury said eligible U.S. citizens born between Jan. 1, 2025 and Dec. 31, 2028 would receive a $1,000 government contribution into those accounts.
In the rollout, BNY will act as financial agent to manage initial accounts and help build the Trump Accounts app, while the Treasury will retain control over the app and initial operations. Robinhood also pledged to match the $1,000 government contribution for eligible children of its employees.
MARKET REACTION
Robinhood’s shares closed the regular session around $69.65, slightly down on the day, then jumped in after-hours trading to about $74.92, a gain north of 7.5%. Robinhood shares are down roughly 38% year-to-date.
BUYBACK AND FINANCIALS
Last month, Robinhood’s board approved a $1.5 billion share repurchase program over three years, combining $1.1 billion in new capacity with amounts carried over from a prior program. The buyback aims to support the stock after a challenging period for both equities and crypto.
In February, Robinhood reported Q4 revenue of $1.28 billion, missing analyst estimates of $1.34 billion. Crypto revenue declined 38% to $221 million. Net income fell 34% to $605 million, while EPS came in at $0.66, modestly beating expectations.
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