Ark Invest Buys $39.7M in Robinhood After Crypto-Driven Earnings Miss
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- Ark Invest purchased roughly $39.7 million of Robinhood shares on April 29 across three funds after the company's Q1 earnings miss on April 28, with Robinhood ranking among the top holdings (~3%) in all three portfolios
- Robinhood (HOOD) dropped nearly 12% from its earnings miss on April 28, driven primarily by weaker crypto trading revenues, though the stock gained about 3% on Thursday and remains down roughly 37% year-to-date
- Cantor Fitzgerald reiterated an 'Overweight' rating and $110 price target, noting that preliminary April equity and options trading volumes are tracking toward the highest monthly level of the year
- Compass Point maintained a 'Buy' rating while trimming its price target to $107, calling the market reaction 'backwards looking' given expectations for a stronger second quarter
- KBW (Keefe, Bruyette & Woods) cut its price target from $75 to $65, holding a 'Hold' rating and warning that declining transaction fees and lower crypto take rates will pressure earnings estimates through 2028
- Bernstein kept an 'Outperform' rating with a $130 price target, pointing to signs that crypto activity is stabilizing while equity and options strength continues
- Rothera, Robinhood's planned prediction markets platform, is flagged by Cantor and others as a potential new revenue and margin driver beyond traditional trading
Why it matters: The split between KBW's $65 cut and Bernstein's $130 target — a 2x spread — shows how Robinhood's near-term fate hinges on whether April's equity and options volume surge can offset persistent crypto fee compression that KBW expects to last through 2028. Ark Invest's $39.7M buy signals that some of the largest crypto-aware investors see the 37% year-to-date decline as disconnected from improving non-crypto fundamentals.
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