HOOD Stock Catches A Break: Cathie Wood's ARK Boosts Stake, Mizuho Sees More Upside

Robinhood’s shares have been trading below $100 for the last two sessions, failing to get a lift from several factors, including receiving a key role for Trump accounts and the SpaceX IPO offering.

• The company’s shares closed down nearly 10% on Monday, for a fifth straight session of losses and for their worst day since November.
• Robinhood UK on Monday said it was launching a stocks & shares ISA and would offer zero platform fees, commissions, and FX fees, along with a 2% cash bonus.
• Mizuho said this launch is a major positive catalyst for Robinhood's international expansion.

Shares of Robinhood Markets Inc. rose marginally after the bell on Monday in a sigh of relief for investors after Cathie Wood’s ARK Investment Management scooped up more than 360,000 shares of the fintech play, loading up on its small buy from last week.

The company’s shares closed down nearly 10% on Monday, marking a fifth consecutive session of losses and their worst single-day performance since November. The shares settled at $89.91, their lowest closing level since June of last year. Robinhood stock reached an all-time high of $152.46 in October but has since fallen about 35% from that level.

Robinhood’s shares have now traded below the $100 level for two straight sessions, failing to gain traction despite several potentially supportive developments. These include the company securing a key role in so-called “Trump accounts,” optimism around the potential SpaceX initial public offering, expansion into new business lines, and CEO Vlad Tenev highlighting efforts to simplify trading and avoid a repeat of the disruptions seen during the 2021 meme-stock crisis.

Cathie Wood’s investment

On Monday, ARK bought a total of 363,317 shares of Robinhood, with 235,077 shares purchased by its ARKK ETF and 64,282 shares purchased by its ARKW ETF, according to the Ark Invest Tracker on X. Another 63,958 shares were bought by ARKF ETF.

Wood’s ARKF purchased 19,376 shares of Robinhood on Friday as well. In January alone, Robinhood’s share decline 12%, primarily due to a partial hit from Bitcoin’s prices constantly declining, making it a lucrative stock to buy for many.

Another Positive Catalyst

Robinhood on Monday said it was launching a stocks & shares ISA to bring its low-cost, intuitive investing experience to the UK. This would combine zero platform fees, commissions, low FX fees, and a 2% cash bonus, with Robinhood noting that customers can earn 2% back on new eligible ISA contributions when they fund their account before April 5.

Robinhood said that ISAs are the UK’s most widely used long-term savings vehicle, yet many investors remain deterred by high fees, complex transfers, and outdated platforms. Robinhood’s ISA gives UK customers access to around 5,000 US-listed stocks and ADRs with no platform fees, no commissions, and just 0.10% FX fee per trade

Mizuho said this launch is viewed as a major positive catalyst for Robinhood's international expansion, particularly given the underpenetration of ISAs among Robinhood's core 18-34 demographic in the U.K. Mizuho maintained an ‘Outperform’ rating and $172 price target, according to Stocktwits data.

What Is Retail Thinking?

Retail sentiment on Robinhood improved to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A bullish user on Stocktwits said Robinhood could likely hit $100 again before earnings next week, but only if the price reclaims $95 sooner.

In the last 24 hours, the retail message volumes on Robinhood exploded by more than 1,000% on Stocktwits, and in the last year, the ticker added 40% more followers on the platform.

Another bullish user expects the stock to see a a 7% jump on Tuesday.

Shares of Robinhood have gained 71% in the last 12 months.

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