Robinhood Markets, Inc.

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Somewhat Bullish +50

Cathie Wood Bets $19 Million on 5 Beaten-Down Stocks

πŸ“ˆ ARK Invest's Cathie Wood deployed approximately $19.1 million to purchase stakes in five beaten-down stocks, signaling confidence in long-term growth opportunities despite market volatility.

πŸ“± Robinhood Markets (HOOD) received the largest investment, with ARK acquiring about 183,933 shares worth roughly $15.12 million.

🏦 This purchase increases Robinhood's weightage to 4.3% in the ARK Blockchain & Fintech Innovation ETF and 4.8% in the ARK Next Generation Internet ETF.

πŸ’‘ Analysts see significant upside for HOOD, with average price targets implying a potential 63% gain from current levels to reach $125.65.

🎲 DraftKings (DKNG) saw an addition of approximately 58,048 shares valued around $1.48 million following its first positive net income in 2025.

πŸ“Š The online sports betting leader now holds 1.9% weightage in the ARK Blockchain & Fintech Innovation ETF and 1.05% in the ARK Next Generation Internet ETF.

πŸ₯ Cerus Corp. (CERS) was acquired with about $1.37 million worth of shares, highlighting interest in healthcare innovation and pathogen reduction technology.

🧬 Compass Pathways (CMPS) received an investment of roughly $706,861 for 100,264 shares, focusing on psilocybin-based mental health treatments.

⚠️ Cerus is categorized as a risky penny stock that currently holds 1.2% weightage in the ARK Genomic Revolution ETF (ARKG).

🧠 Compass Pathways focuses on its investigational COMP360 therapy for treatment-resistant depression and PTSD during late-stage clinical trials.

πŸ“ˆ Wall Street analysts rate Robinhood as a "Moderate Buy" with potential upside reaching up to 133.5% at high price targets.

πŸš€ DraftKings receives a "Strong Buy" rating with analyst price targets suggesting the stock could surge by up to 110.7% over the next year.

βš•οΈ Cerus has made 20 million transfusible doses of INTERCEPT-treated blood components available to patients since the start of 2025.

🧠 Analysts see Compass Pathways as a "Strong Buy" with potential upside of 963.8% if it hits high price targets around $70.

πŸ”„ ARK's strategy emphasizes investing in disruptive technologies and emerging disruptors even when market sentiment is uncertain.

Bullish Signals
  • Cathie Wood's ARK Invest purchased approximately $19.1 million across five beaten-down stocks, demonstrating strong conviction in their long-term potential despite market volatility.
  • Robinhood Markets (HOOD) now represents a significant 4.3% weightage in the ARK Blockchain & Fintech Innovation ETF and 4.8% in the ARK Next Generation Internet ETF, highlighting its strategic importance to ARK's portfolio.
  • Analysts see potential upside of 63% for HOOD stock from current levels with a high price target of $180 implying a possible surge of up to 133.5% over the next year.
  • Among analysts covering Robinhood, a majority provide bullish ratings with 15 giving it a 'Strong Buy' and 2 recommending a 'Moderate Buy'.
  • DraftKings (DKNG) continues to benefit from state-by-state legalization across the U.S., expanding its total addressable market and improving profitability through disciplined marketing spending.
  • In 2025, DraftKings reported positive net income for the first time driven by a 27% increase in revenue, signaling a strong turnaround in performance.
  • Analysts see potential upside of 45% for DKNG stock with a high price target of $53 implying a possible surge of up to 110.7% over the next year.
  • Among analysts covering DraftKings, a dominant majority provide 'Strong Buy' ratings with 25 out of 34 recommending this bullish stance.
  • Cerus Corp. (CERS) has reached a milestone with 20 million transfusible doses of INTERCEPT-treated blood components made available to patients at the start of 2025.
  • CERUS stock offers substantial upside potential with analysts projecting a 159% gain from current levels if it hits an average price target of $5.00.
  • Compass Pathways (CMPS) is conducting many late-stage clinical trials for its investigational psilocybin-based therapy COMP360, which targets treatment-resistant depression and PTSD.
  • Compass Pathways offers significant upside potential with analysts projecting a possible surge of up to 963.8% over the next year if the company meets its high price target of $70.
Risk Factors
  • Robinhood's stock is down 33% so far this year, indicating significant near-term weakness despite long-term potential.
  • The company remains sensitive to trading volumes and crypto activity, making it a risky bet for investors amid market uncertainty.
  • Robinhood currently holds 4.3% weightage in ARKF and 4.8% in ARKW, suggesting that any decline in these ETFs could amplify volatility.
  • Cerus Corp. is classified as a risky penny stock, with analysts divided into two Strong Buy ratings and two Hold ratings among only four coverages.
  • Compass Pathways faces uncertainty as it is conducting late-stage clinical trials for COMP360 that must succeed before regulatory approval can be obtained.
  • Cerus reported minimal year-to-date performance of only a 2.03% decline, but its high-risk status as a small-cap healthcare company with limited analyst coverage increases valuation risk.
  • Compass Pathways stock is up only 0.46% this year despite the high price target, suggesting potential lack of current market momentum compared to other growth stocks.
Full Analysis
Cathie Wood, founder and CEO of ARK Invest, has executed a significant investment strategy in volatile market conditions by purchasing approximately $19.1 million across five beaten-down stocks with long-term growth potential. The largest portion of this portfolio was allocated to Robinhood Markets (HOOD), where ARK acquired roughly 183,933 shares on March 5 worth about $15.12 million. This transaction increased Robinhood's weightage to 4.3% in the ARK Blockchain & Fintech Innovation ETF and 4.8% in the ARK Next Generation Internet ETF. Wood appears to be betting on Robinhood's ability to evolve from a meme-stock trading platform into a comprehensive financial ecosystem offering options, retirement accounts, and services overseas, despite the stock remaining sensitive to trading volumes and cryptocurrency activity. Analysts currently rate HOOD as a "Moderate Buy" with a high price target of $180, implying potential upside of 133.5%, though the stock has fallen 33% year-to-date. The remaining capital was distributed among three other emerging disruptors, including DraftKings (DKNG), Cerus Corp. (CERS), and Compass Pathways (CMPS). ARK purchased approximately 58,048 shares of DraftKings valued at $1.48 million, bringing its position to 1.9% in the ARK Blockchain & Fintech Innovation ETF and 1.05% in the ARK Next Generation Internet ETF. DraftKings recently achieved positive net income in 2025 with a 27% revenue increase and is expanding its market through state-by-state legalization of sports betting. Analysts maintain a "Strong Buy" rating for DKNG, which has seen a high price target of $53 implying potential upside of 110.7%. Additionally, ARK bought about 612,501 shares of Cerus Corp. for roughly $1.37 million and 100,264 shares of Compass Pathways valued at approximately $706,861, highlighting Wood's continued interest in healthcare innovation including pathogen reduction technology and mental health treatments like COMP360. These investments underscore ARK's focus on disruptive technologies such as fintech, genomics, artificial intelligence, and digital entertainment. Cerus now holds 1.2% weightage in the ARK Genomic Revolution ETF and 0.30% in the ARK Innovation ETF, while Compass Pathways holds 1.88% in the ARK Genomic Revolution ETF. Cerus, valued at $370 million, is specializing in blood safety technology with its INTERCEPT Blood System having provided 20 million transfusible doses as of early 2025. Compass Pathways, valued at $747.4 million, is conducting late-stage clinical trials for its psilocybin-based therapy aimed at treating treatment-resistant depression and PTSD. Wall Street analysts generally view these high-conviction bets positively, with DraftKings receiving a "Strong Buy" from 25 of 34 analysts and Robinhood receiving strong buy or moderate buy ratings from most of the 22 analysts covering it.