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A slew of sell-side analysts lowered their price targets for Robinhood Markets, Inc. (HOOD) shares after the company reported underwhelming fourth-quarter results on Thursday. Cathie Wood's Ark Invest, however, deemed it fit to add to its position.

What Happened

Ark Invest bought 2,447,100 shares of Robinhood on Friday, daily trade information from the money management firm showed. At Friday's closing price of $12.73, the total purchase price works out to $31.15 billion.

Ark Invest holds the stock in three of its funds, namely ARK ETF Trust - ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF).

With the latest purchase, Robinhood accounts for 0.1926% of Ark Invest's flagship ARKK ETF. The top holding in the fund is Tesla, Inc. (TSLA), which has an 8.07% weighting.

Why It's Important

Robinhood, which went public through a direct listing, has seen its share languish. The company priced the IPO at $38 apiece, with the shares beginning to trade on July 29, 2021. The shares skyrocketed to a post-IPO high of $85 in the fifth session following the listing, but have pulled back notably from this level.

The fourth-quarter results, which revealed a sequential drop in monthly active users and a wider-than-expected loss, as well as the weak first-quarter revenue guidance, did little to lift the sagging stock. Robinhood shares closed Friday's session up 9.65% at $12.73.