New misstep by Cathie Wood in a 2021 certainly not rosy after the glories of 2020. Hers ARK Investment Management expanded his Robinhood bets in the days leading up to the quarterly accounts that arrived last night. The trading app has disappointed expectations and today marks a decline of around 10% on Wall Street with prices halved compared to the post IPO peaks in early August.
Two Ark ETFs purchased more than 836,000 Robinhood shares, worth at least $ 32.4 million, in the two days leading up to the third quarter earnings. Ark held a stake of approximately 9.74 million shares in Robinhood, valued at approximately $ 385 million as of Tuesday’s close, Bloomberg data shows.
Wood’s flagship fund, l‘ARK Innovation ETF (ARKK), fell 3.9% this year, compared to the more than 20% return on the S&P 500 Index.
Disappointment Robinhood thanks to the sboom of crypto trading revenues
Robinhood’s net revenues were $ 365 million in the three months from July to September, well below the consensus estimates gathered by Refinitiv of $ 431.5 million and even lower than Q2 2021 ( $ 565 million). In any case, revenues increased by 35% year on year. The net loss of $ 1.32 billion, or $ 2.06 per share, was broadly in line with expectations ($ 1.37 per share).
Missing was the support of cryptocurrency trading which had driven revenue in the second quarter. Third quarter transaction-based revenue was $ 267 million, with only 51 million coming from cryptocurrency trading compared to 233 million in the second quarter, helped byinterest in dogecoin. “The second quarter was kind of one of those idiosyncratic market events where there is huge specific interest in the doge,” remarked Jason Warnick, CFO of Robinhood.