Cathie Wood sells her favorite stock despite surge

Robinhood Markets (NASDAQ: HOOD) roseate arsenic overmuch arsenic 8% intraday connected June 10.

The rally followed a clump of developments that landed 1 aft the other, including a stock purchase, a caller regulatory milestone, and beardown monthly trading data.

Even so, Cathie Wood's ARK Invest sold its involvement successful 1 of her favourite names.

Related: Cathie Wood's favourite banal surges connected OpenAI deal

Why Robinhood surged connected June 10

The surge successful Robinhood came connected the backmost of respective events betwixt June 9 and June 10.

A regulatory filing dated June 5 showed that an entity tied to Robinhood manager and Ribbit Capital laminitis Meyer Malka bought 250,000 shares past week astatine $80.74 apiece, a $20.2 cardinal bet.

The presumption is held done Ribbit-affiliated funds (Bullfrog Capital), with Malka disclaiming beneficial ownership beyond his pecuniary interest.

After the purchase, entities linked to Malka power much than 8 cardinal HOOD shares crossed funds, trusts, and related vehicles.

Ribbit was an aboriginal backer of Robinhood. It joined Robinhood's 2014 Series A circular and helped pb exigency financing during the 2021 GameStop frenzy.

Separately, CEO Vlad Tenev said connected X connected June 9 that Robinhood Securities had been approved to service arsenic an underwriter, which is simply a measurement beyond its existent relation arsenic a selling-group subordinate successful nationalist offerings. The clearance comes astatine a clip erstwhile the marketplace is gearing up for mega IPOs from SpaceX, Anthropic, and OpenAI.

Robinhood's monthly operating data, released connected June 9, added to the momentum. Equity notional trading volumes deed $315 cardinal successful May, up 75% year-over-year, portion full level assets reached a grounds $377 billion, up 48% from a twelvemonth earlier. Funded customers roseate to 27.7 million.

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How overmuch did Cathie Wood sell?

ARK Invest's ARK Innovation ETF (ARKK) money sold 89,915 shares of Robinhood connected June 10, astir 0.1166% of the full ETF size. As per Investing.com, the shares were worthy astir $7.5 million.

Despite the sale, Robinhood remains the fund's third-largest holding, astatine a 4.94% weighting.

Beyond ARKK, Robinhood is the third-largest holding with a 5.61% weighting in ARK Invest's ARK Blockchain & Fintech Innovation ETF (ARKF) fund.

HOOD closed astatine $86.36 connected June 10, a summation of 3.09%. The banal opened 2.33% higher astatine $88.37, arsenic of property time.

The banal has climbed much than 12% implicit the past month, though it remains down much than 23% year-to-date, per Yahoo Finance.