Cathie Wood’s ARK Invest purchased a large chunk of shares in U.S.-based financial services company Robinhood (HOOD), a day after the popular trading platform laid out plans to expand in Europe.
ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) bought a combined 1,141,046 shares of the cry[to trading service provider. The total purchase had a value of $9.54 million based on Wednesday’s close of $8.36.
The trading firm on Tuesday, in its third-quarter earnings statement said,
“With an experienced team in place, we will soon launch brokerage operations in the U.K. As another step in global expansion, we are also planning to launch crypto trading in the EU following our U.K. launch.”
The exchange’s expansion into Europe comes as the company looks to capitalize on the growing popularity of online trading. The platform has been particularly popular among young investors, who have been drawn to its commission-free trading and easy-to-use interface.
ARK Invest’s purchase of the exchange shares is a sign of confidence in the company’s future. The firm is known for its investment in disruptive technology companies, and Robinhood is seen as a leader in the online trading space. ARK Invest said in a statement,
“We believe that Robinhood is well-positioned to capitalize on the growing trend of online trading. The company has a strong brand, a loyal customer base, and a talented team of executives.”
Robinhood’s Expansion Plans
Robinhood’s expansion into Europe is a significant step for the company. The European market is home to over 750 million people, and it is a major market for online trading.
The exchange plans to launch its brokerage operations in the U.K. first, followed by other European countries. The company is also planning to launch crypto trading in the EU.
Robinhood’s stock price has been volatile in recent months. The stock is down over 70% from its all-time high, but it has rebounded in recent weeks.
Analysts believe that Robinhood’s stock price could continue to rally in the months ahead. The company’s expansion into Europe could be a major catalyst for the stock.
Overall, ARK Invest’s purchase of Robinhood shares is a sign of confidence in the company’s future. Robinhood’s expansion into Europe is a significant step for the company, and it could be a major catalyst for the stock price.