Ark Invest Buys $12M of Robinhood Stock as JP Morgan Cuts Target to $113
Ark Invest increased its Robinhood position by purchasing $12 million in shares, signaling confidence in the brokerage's crypto-linked revenue potential following CEO Cathie Wood’s bullish outlook. Meanwhile, Robinhood shares have fallen for five consecutive weeks after a Q4 revenue miss and JP Morgan cut its price target to $113.
1. Ark Invest Boosts Robinhood Stake
Ark Invest allocated $12 million to acquire Robinhood shares, increasing the brokerage's weighting within its ARKF ETF and demonstrating confidence in future crypto-driven revenue streams.
2. Q4 Revenue Miss Triggers Price Cuts
Robinhood reported quarterly revenue below analyst expectations, prompting four price-target reductions, the most severe from JP Morgan at $113, and coinciding with a five-week share price decline tied to weakening cryptocurrency markets.
3. Cathie Wood’s Crypto Bull Case
CEO Cathie Wood argued that recent Bitcoin weakness stems from algorithmic selling rather than fundamental deterioration, maintained a long-term uptrend outlook, and joined LayerZero’s advisory board to support scalable blockchain infrastructure for AI applications.