# Cathie Wood buys back into Robinhood

> ARK dumped Robinhood all summer, then reversed course in September. Here is what the numbers behind the buy look like.
- Title: Cathie Wood buys back into Robinhood · Yahoo Finance
- Summary: ARK dumped Robinhood all summer, then reversed course in September. Here is what the numbers behind the buy look like. Robinhood's growth story now rests on…
- Keywords: robinhood, cathie wood, ark invest, prediction markets, fintech, business, finance, Cathie, Wood, buys, back, Yahoo Finance
- Source: Yahoo Finance — https://finance.yahoo.com/markets/stocks/articles/3-reasons-think-cathie-wood-203201033.html
- Published: 2026-09-12T20:32:01+00:00
- Read time: 2 min
- Topics: robinhood, cathie wood, ark invest, prediction markets, fintech, business, finance
## ARK goes back in
ARK Invest bought 28,589 Robinhood shares for its flagship Innovation ETF on Sept. 4, then added 27,083 more on the first trading day after Labor Day.
## A reversal, unexplained
ARK spent much of the summer selling Robinhood, unloading a big block in July and selling again on Aug. 26. Daily trade disclosures don't include reasoning, so Wood hasn't said what changed.
## Buying after a 17% pop
The first purchase landed one day after the stock jumped about 17% in a session. Even so, at roughly $113 it would need another 36% to reach its 52-week high of $153.86.
## Prediction markets out-earn crypto
Event contracts brought in $156 million of revenue in Q2, up more than tenfold year over year. Crypto trading brought in $100 million, down 38%.

> a line whose revenue fell 38%
## But volumes are cooling
Customers traded 4.7 billion event contracts in August, 15 times the year-ago level but 23% below July. July's 6.1 billion was already down 5% from June's peak.
## Money keeps arriving
Platform assets hit $384 billion in August, up 26% year over year, with $4 billion of net deposits in the month and about $74 billion over 12 months. Funded customers reached 28.6 million.
## Assets are the engine
Trading, margin lending and interest on customer cash all run off that base. A quarter more assets than a year ago means more to monetize whatever product happens to be hot.

> no matter which product is popular in a given month
## Customers borrowing hard
Margin balances closed August at $21.5 billion, up 72% in a year. That lending earns interest in busy and quiet markets alike, though balances can unwind fast in a selloff.

> They're borrowing against their portfolios to invest more.
## A hold, not a buy
At about 39 times projected 2027 earnings, the price already assumes years of strong growth. A meaningful drop, or event contracts scaling while the stock stalls, would change that.

> I view Robinhood stock as a hold today, not a buy.
## Key takeaway

Robinhood's growth story now rests on prediction markets, a fast-growing asset base and a margin book that has nearly doubled, but at 39x 2027 earnings the price already assumes all of it.