HOOD Stock Heads For Worst Month Since February: Cathie Wood's ARK Loads Up Amid Dip

• The ARK Innovation ETF, ARK Next Generation Technology ETF, and ARK Blockchain & Fintech Innovation ETF bought approximately 99,418 HOOD shares in total.
• HOOD stock is down more than 18% in October so far. 
• After the company’s results, multiple Wall Street analysts slashed their price targets for HOOD. 

Shares of Robinhood Markets Inc. (HOOD) fell more than 1.5% in the overnight session late Wednesday and are on track to post its worst monthly decline since February. 

Meanwhile, Cathie Wood’s ARK Investment Management loaded up on the stock on Wednesday, taking advantage of its plunge after it missed third-quarter (Q3) revenue expectations and dipped further after a series of Wall Street price-target cuts. 

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ARK Invest Loads Up On HOOD Stock

The asset management firm purchased stock worth $9.1 million across three exchange-traded funds on Wednesday. 

The ARK Innovation ETF (ARKK) purchased 69,604 shares of HOOD worth about $$6.4 million. The ARK Next Generation Technology ETF (ARKW) bought 17,699 HOOD shares worth $1.6 million, while the ARK Blockchain & Fintech Innovation ETF (ARKF) bought 12,115 HOOD shares worth $1.1 million. 

HOOD’s Q3 Results Disappoint

Robinhood posted record third-quarter revenue of $1.42 billion, though it missed Wall Street estimates. The brokerage firm posted adjusted earnings of $0.60 a share. 

Robinhood's transaction-based revenue grew about 19% to $867 million, while prediction markets revenue jumped more than sixfold to $173 million and options revenue surged 31%. 

However, crypto trading activity dipped 38% in transaction volume in the latest quarter.

HOOD Stock Garners Target Cuts On Wall Street

Following the company’s results, multiple Wall Street analysts slashed their price targets on HOOD stock. 

Scotiabank cut Robinhood's price target to $124 from $136 and maintained an ‘Outperform’ rating on the shares. The analyst said that while Robinhood had reported record revenues in Q3, revenue growth slowed quarter-over-quarter and, with a lower EPS, the stock has had a "weak year."

Goldman Sachs, Mizuho, Truist, Barclays, JPMorgan, Keefe Bruyette, and Wells Fargo were among other analysts who lowered their targets on the brokerage firm. 

HOOD Stock: Retail Stance

On Stocktwits, retail sentiment around HOOD stock slipped from ‘extremely bullish’ to ‘bullish’ territory over 24 hours amid ‘extremely high’ message volumes. 

One bearish user said, “$HOOD This cooked!”

Another user said, “$HOOD This has more room to the downside, retest looks complete.”

However, a third user said, “$HOOD Diversification. Forward thinking company.”

HOOD stock is down about 19% year-to-date. 

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