A slew of sell-side analysts lowered their price targets for Robinhood Markets, Inc. (NASDAQ:HOOD) shares after the company reported underwhelming fourth-quarter results on Thursday.
Cathie Wood's Ark Invest, however, deemed it fit to add to its position.
What Happened: Ark Invest bought 2,447,100 shares of Robinhood on Friday, daily trade information from the money management firm showed. At Friday's closing price of $12.73, the total purchase price works out to $31.15 billion.
Ark Invest holds the stock in three of its funds, namely ARK ETF Trust - ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (NYSE:ARKF).
With the latest purchase, Robinhood accounts for 0.1926% of Ark Invest's flagship ARKK ETF. The top holding in the fund is Tesla, Inc. (NASDAQ:TSLA), which has an 8.07% weighting.
Related Link: Robinhood CEO Explains Why He's Resisting Calls For Accepting Shiba Inu
Why It's Important: Robinhood, which went public through a direct listing, has seen its share languish. The company priced the IPO at $38 apiece, with the shares beginning to trade on July 29, 2021.
The shares skyrocketed to a post-IPO high of $85 in the fifth session following the listing, but have pulled back notably from this level.
The fourth-quarter results, which revealed a sequential drop in monthly active users and a wider-than-expected loss, as well as the weak first-quarter revenue guidance, did little to lift the sagging stock.
Robinhood shares closed Friday's session up 9.65% at $12.73.
Related Link: Robinhood Adds Crypto Gift Capability To Platform: Now You Can Send Bitcoin, Doge Presents
Photo: Courtesy of Diverse Stock Photos on Flickr
