Cathie Wood's Ark Invest sold about $47.5 million of Robinhood (HOOD) stock between Oct. 6 and Oct. 9. The stock traded around $107 to $112 during that period. By Oct. 28, HOOD stock was down more than 23% over the past month, closing at $91.43 per share, and Ark Invest bought back $9.1 million worth of shares. That marked Ark's biggest Robinhood buy since April. Just a few days later, on Nov. 2, Ark Invest added another 7,703 shares to its portfolio.
Wood has developed a funny reputation on social media. People say that whatever she buys falls and whatever she sells rises. Her history with Robinhood has generally reflected as much. Wood sold HOOD stock when it was trading around $19 in early 2024, but it went on to hit a record high of $152 in October 2025. Later, she bought about $15 million worth of shares at roughly $123 per share in December 2025, and the stock sank to the $60 range by March 2026.
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With Cathie Wood buying shares of Robinhood again, people have started to wonder whether the bulls should see it as a positive sign or start worrying. Let's take a closer look.
Cathie Wood Got the Timing Right
Cathie Wood seems to have sold at the right time, since HOOD stock fell shortly after her recent sale. There were a few reasons behind the sharp selloff.
For one, Robinhood CEO Vlad Tenev sold about $42.6 million worth of shares in early October. On Oct. 14, Wolfe Research also downgraded HOOD stock to “Peer Perform,” saying that most of the good news was already priced in. Wells Fargo trimmed its target from $125 to $120 on the same day, and the stock slid 8.5% in a single trading session. On Oct. 27, Robinhood's third-quarter earnings report also disappointed investors. Finally, on Oct. 29, a record $6.3 billion hack at Binance shook crypto stocks, pushing HOOD stock to fall 7.2% the next day even though it had no news of its own.
After all of this chaos, Cathie Wood’s decision to start buying shares again suggests that she sees the selloff as overdone. This time, I think her buy decision deserves a bit more credit than usual.
On top of that, while some investors keep treating Robinhood as just a crypto stock, it has a lot more to offer now. Back in June, I wrote about how prediction markets and options will be growth drivers to watch. The company's latest quarter backs that up, with prediction market revenue rising more than sixfold to $173 million and options revenue growing 31% year-over-year (YOY) in Q3.
About Robinhood Stock
Robinhood is a trading app where people can buy and sell stocks, options, cryptocurrencies, and prediction market contracts, as well as manage banking and retirement accounts. Robinhood has been one of Cathie Wood's favorite fintech bets for years, sitting just outside of the top 10 holdings of her flagship Ark Innovation ETF (ARKK) as of late October. Founded in 2013, the company is based in Menlo Park, California, and has a market capitalization of $70.5 billion.
HOOD stock has dropped 29% so far this year, underperforming the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which has remained relatively flat over the same period. HOOD stock has been fairly volatile this year. In the past one month alone, Robinhood has crashed roughly 28%.
www.barchart.com Prediction Markets Revenue Surpasses Crypto Revenue
Robinhood reported its Q3 fiscal 2026 results on Oct. 27. Revenue rose 12% to $1.42 billion but still marginally missed the analyst consensus of $1.43 billion. Adjusted EPS of $0.60 also came in below the $0.64 analyst estimate.
Crypto revenue fell 55% to $120 million in Q3. The two positives from the report were prediction markets and options. Prediction markets revenue, or “event contracts” revenue, climbed to $173 million, while options revenue grew 31% YOY to $399 million.
For the next quarter, CFO Shiv Verma said the company has started strong, with October net deposits already above $13 billion. This included $6 billion from the Dell family's Trump Accounts contribution. Management didn't mention a forecast for total expenses due to uncertain credit losses and possible regulatory costs.
What Do Analysts Expect for Robinhood Stock?
Based on 30 Wall Street analysts with coverage, Robinhood holds a consensus “Strong Buy” rating overall. The mean price target of $128.18 indicates potential upside of 62% from current levels. After the sharp October selloff, HOOD stock now trades just below its lowest price target of $80 per share. This suggests that analysts largely believe the stock has room to run from here.
www.barchart.com On the date of publication, Jabran Kundi did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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