Cathie Wood doesn't do panic selling — she does bargain hunting. On Wednesday, her ARK Invest fund made its largest single-day stock purchase of 2026: over $37 million worth of Robinhood Markets (NASDAQ: HOOD). The timing? Right after the trading app's earnings report rattled investors, sending the stock down hard.
Robinhood reported Q4 2025 earnings on February 10, beating analyst expectations with EPS of $0.66 versus the forecasted $0.63. That should've been good news. But the market focused on one thing: crypto revenue tanked. Fourth-quarter crypto transaction revenue fell 38% to $221 million, and investors worried about the company's reliance on volatile digital assets. Shares slid 8% in early trading on February 11, 2026, pushing the stock down roughly 31% year-to-date.
While mainstream investors fled, Wood spotted opportunity. ARK acquired 433,806 shares across its ARKK, ARKW, and ARKF ETFs, amounting to a total investment of $37.1 million. This move elevated Robinhood to the No. 9 holding in ARKK, with a portfolio weight of roughly 3%. Here's why Wood might see gold where others see red: Robinhood reported record annual revenue of $4.5 billion (up 52% year-over-year), full-year net income of $1.9 billion, and assets under custody jumped 119% to $333 billion, with net deposits of $68.1 billion representing a 35% growth rate. Plus, Robinhood Gold subscribers surged 58% to 4.2 million — showing real stickiness beyond just trading volume.
Robinhood's prediction markets saw 12 billion contracts traded in 2025, with this segment rapidly overtaking cryptocurrency as the company's primary growth driver. Wall Street's betting on the turnaround too: The consensus price target stands at $122.81 based on 28 analysts. For Cathie Wood, buying the dip after strong fundamentals remain in place? That's just how she operates.