Ark Invest snapped up a total of around $4.7 million worth of Robinhood Markets (HOOD) -) Tuesday. The purchase was spread across Ark's Innovation ETF and Ark's Fintech Innovation ETF, with Ark Innovation picking up the bulk of the purchase at 343,337 shares.
The multi-million dollar purchase comes a day after Ark, across the same funds, picked up more than 500,000 shares of Robinhood, valued at around $5.5 million.
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Robinhood, the digital financial services app, has been an Ark favorite for a while. Ark Innovation owns slightly under 21 million shares in the company, worth around $224.8 million and weighted at 2.88% of the fund.
The ETF's largest holdings remain centered around Tesla (TSLA) -) and Roku (ROKU) -) — Ark Innovation's 3.2 million Tesla shares are worth around $875.8 million; the firm's 7.9 million Roku shares are worth $643.9 million.
The purchase comes a few weeks after Robinhood reported second-quarter earnings of $.03 per share, beating analyst estimates of a loss of $.01 per share and attaining GAAP profitability for the first time in the company's public history.
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The company's revenue for the quarter jumped 10% to $486 million; Robinhood reported net income of $25 million, compared to the previous quarter's net loss of $511 million ($.57 per share).
Robinhood had 10.8 monthly active users for the second quarter, making up the $89 billion in assets the firm has under custody.
“Reaching GAAP profitability is a testament to the work our team has done to transform the business and better position Robinhood to drive shareholder value,” Jason Warnick, Robinhood's CFO, said in a statement. “With five consecutive quarters of revenue and Adjusted EBITDA growth, we’re continuing to drive efficiency across our operations while investing in customer experience."
Robinhood's stock, which is up 32.6% for the year, closed at $10.80 per share and fell slightly in pre-market trading.
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