Cathie Wood buys $46 million of tumbling tech stock
Cathie Wood He doesn’t give up on his favorite stocks easily.
The chairman of Ark Investment Management actively manages technology assets and his timing is often linked to market movements.
Sometimes Wood buys his biggest holdings on the way down, hoping for a bargain. That’s what he just did.
It was a weak start to the year for Wood. Wood’s flagship as of February 13 Ark Innovation ETF (ARKK) has decreased by 9.79% since the beginning of the year, S&P 500 It lost 0.14% as pressure increased on growth-oriented technology stocks.
Wood is credited with the Ark Innovation ETF returning 153% in 2020. Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period.
But Wood’s style also leads to painful losses in down markets, as seen in 2022 when the Ark Innovation ETF fell more than 60%.
These fluctuations have put pressure on Wood’s long-term earnings. As of February 13, the Ark Innovation ETF had a five-year annualized return of -14.67%. S&P 500 According to data, it achieved an annual return of 13.33% in the same period. Morning Star.
The Ark Innovation ETF saw net outflows of approximately $1.4 billion in the 12 months through February 11.Getty Images ·Getty Images
Wood focuses on high-tech companies in the field of artificial intelligence, block chainbiomedical technology and robotics. He thinks these businesses have great growth potential, but volatility often causing fluctuations in Ark’s funds.
The Ark Innovation ETF wiped out $7 billion from investor wealth from 2014 to 2024, according to a Morningstar analyst analysis. Amy Arnott. This makes it the third biggest wealth destroyer among mutual funds and ETFs in Arnott’s rankings. The analyst did not update his 2025 rankings.
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One letter Published on January 15, Wood says the US economy is storing energy for a sharp recovery in 2026.
“Despite sustained real gross domestic product growth over the past three years, the underlying U.S. economy has experienced a bumpy decline. recession and has evolved into a coiled spring that could rebound strongly over the next few years,” Wood wrote.
Wood also said, “artificial intelligence The “bubble” talk is “years away” and that the “strongest capital spending cycle in history” is coming.
“What was once a cap on spending now appears to have become a floor, with artificial intelligence, robotics, energy storage, blockchain technology and multiomics sequencing platforms ready for prime time,” he said.
Not all investors agree with Wood’s optimism. The Ark Innovation ETF saw net outflows of about $1.4 billion in the 12 months through Feb. 11, according to the ETF research firm VettaFi.
On February 11 and 12, Wood’s Ark funds purchased a total of 608,483 shares of Robinhood Markets Inc. (HOODArk’s daily trading information shows it is worth about $46.2 million. This was one of his biggest recent purchases.
Wood’s move follows Robinhood’s mixed fourth-quarter report on Feb. 10.
Related: Cathie Wood sends a clear 3-word message on stock outlook in 2026
company sent It earned 66 cents per share, beating the 60-cent consensus estimate, but revenue came in below that at $1.28 billion. Wall StreetAccording to data, the expectation is 1.34 billion dollars Investing.com.
Shares of Robinhood fell 8.9% and 8.8% on February 11 and 12, respectively.
Robinhood is known for its commission-free trading platform that allows investors to buy and sell crypto as well as stocks. Order flow payment (PFOF) generates revenue through interest earned on customer cash balances, margin credit and subscription services.
Cryptocurrencies make up a significant portion of Robinhood’s revenue, accounting for more than 17% of total revenue in Q4.
retreat The declines in Bitcoin over the past few months have negatively affected Robinhood’s revenue as well as its stock performance.
Robinhood said: Press release It said Q4 revenue was down 38%, “partially offset by cryptocurrency revenue.”
“There has historically been a strong correlation between Bitcoin’s value and Robinhood’s stock performance,” David Jagielski wrote. Colorful Fool.
Wood had a strong interest in Robinhood after it went public in 2021. But it sold nearly 30 million Robinhood shares from the first quarter of 2024 to the fourth quarter of 2025. According to data from Stockcircle.
As of Feb. 13, Robinhood is the Ark Innovation ETF’s seventh-largest holding, with a stake of approximately 4%.
Barclays lowered its price target on Robinhood’s stock to $124 from $159 and maintains its overweight rating following its Q4 report. Fly reported On February 11.
The analyst said Robinhood is still pursuing “ambitious” long-term goals but warned that a recent slowdown in net new asset growth could weigh on the stock. Barclays also attributed the weak Q4 results to lower call rates in options and crypto, which reduced trading revenue.
Robinhood shares closed at $75.97 on Feb. 13 and are down 32.8% year to date.
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