Cathy Wood won’t give up her favorite stocks easily.
The head of Ark Investment Management actively manages her technology holdings, and her timing often correlates with market moves.
Wood sometimes buys her top holdings when prices are falling, hoping to get a bargain. That’s what she just did.
It’s been a rough start to the year for Wood. Wood’s flagship Ark Innovation ETF (ARKK) is down 9.79% year to date through February 13, while the S&P 500 has fallen 0.14% as pressure on growth technology stocks intensifies.
Wood rose to fame with his Ark Innovation ETF, which delivered a 153% return in 2020. Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s 17.88% return during the same period.
But Wood’s style can also bring painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF plunged more than 60%.
These fluctuations affected Wood’s long-term earnings. Morningstar data shows that as of February 13, the Ark Innovation ETF’s five-year annualized return was -14.67%, while the S&P 500’s annualized return during the same period was 13.33%.
Wood focuses on high-tech companies in artificial intelligence, blockchain, biomedical technology and robotics. She sees these businesses as having huge growth potential, although their volatility often causes Ark’s funding to fluctuate.
According to analysis by Morningstar analyst Amy Arnott, the Ark Innovation ETF lost $7 billion in investor wealth from 2014 to 2024. That makes it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s rankings. The analyst has not yet updated the 2025 rankings.
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Wood said in a letter published on January 15 that the U.S. economy is accumulating energy for a sharp rebound in 2026.
“Despite sustained real GDP growth over the past three years, U.S. economic fundamentals have suffered a persistent recession and have evolved into a coiled spring that is likely to rebound strongly in the coming years,” Wood wrote.
Wood also rejected talk of an “AI bubble,” saying it was “still years away” and that the “most powerful capital spending cycle in history” was coming.
“What was once a spending ceiling appears to have become a floor as artificial intelligence, robotics, energy storage, blockchain technology and multi-omics sequencing platforms are ready for prime time,” she said.
Not all investors share Wood’s optimism. The Ark Innovation ETF saw net outflows of about $1.4 billion in the 12 months ended February 11, according to ETF research firm VettaFi.
Ark’s daily trading information shows that from February 11 to 12, Wood’s Ark funds purchased a total of 608,483 shares of Robinhood Markets Inc. (HOOD), worth approximately $46.2 million. It was one of her biggest recent purchases.
Wood’s move comes after Robinhood released a mixed fourth-quarter report on February 10.
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The company reported earnings of 66 cents per share, above consensus estimates of 60 cents, but revenue of $1.28 billion fell short of Wall Street expectations of $1.34 billion, according to Investing.com.
On February 11 and 12, Robinhood’s stock price fell 8.9% and 8.8% respectively.
Robinhood is known for its commission-free trading platform that allows investors to buy and sell stocks as well as cryptocurrencies. It generates revenue through payments for order flow (PFOF), interest earned on customer cash balances, margin loans and subscription services.
Cryptocurrencies are a significant part of Robinhood’s revenue, accounting for more than 17% of total revenue in the fourth quarter.
Bitcoin’s pullback over the past few months has weighed on Robinhood’s revenue and its stock performance.
Robinhood said in a press release that fourth-quarter revenue was “partially offset by cryptocurrency revenue,” which fell 38%.
“Historically, there has been a strong correlation between the value of Bitcoin and Robinhood’s stock performance,” David Jagielski wrote in Motley Fool magazine.
Wood took a keen interest in Robinhood after it went public in 2021. However, she sold approximately 30 million Robinhood shares from the first quarter of 2024 to the fourth quarter of 2025, according to Stockcircle data.
As of February 13, Robinhood was the seventh-largest holding in the Ark Innovation ETF, accounting for about 4%.
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Tesla (TSLA) 11.53%
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CRISPR therapy (CRSP) 5.89%
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Tempus Artificial Intelligence (TEM) 5.17%
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ROKU 4.54%
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Shopify (store) 4.31%
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Advanced Micro Devices (AMD) 4.04%
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Robin Hood Market (HOOD) 3.99%
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Beam therapy (BEAM) 3.78%
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Roblox (RBLX) 3.59%
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Coinbase Global (COIN) 3.26%
According to The Fly on February 11, Barclays lowered Robinhood’s stock price target from $159 to $124 after the release of the fourth-quarter report and maintained an overweight rating.
The analyst said Robinhood is still pursuing “ambitious” long-term goals, but warned that a near-term slowdown in net new asset growth could weigh on the stock. Barclays also linked weak fourth-quarter results to lower acceptance of options and cryptocurrencies, reducing trading revenue.
Robinhood shares closed at $75.97 on February 13 and have fallen 32.8% so far this year.
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This article was originally published by TheStreet on February 16, 2026, and first appeared in the Investment section. Click here to add TheStreet as your preferred source.