ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024

6. Robinhood Markets, Inc. (NASDAQ:HOOD)

Stake Value as of Q3 2024: $420,959,150

Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services company that provides an electronic trading platform to facilitate the trading of stocks, ETFs, cryptocurrency, and other equities and securities.

In October this year, Cathie Wood’s ARK Invest divested around $36 million worth of Robinhood Markets, Inc. (NASDAQ:HOOD) shares from its three funds. The decision coincided with the surge in the stock’s share price, because of which ARK had to sell a portion of its stake under Rule 12d3-1, which prohibits funds from acquiring more than 5% of an issuer’s total assets.

Robinhood’s share price has gained 140% year-to-date as of November 8, driven by a robust financial performance this year, involving not only an increase in revenue but also significant growth in assets under custody. Q3 2024 was another impressive quarter for the company, with net deposits posted at $10 billion or more for the third successive quarter as Robinhood continues to increase wallet share. Net deposits are now valued at $34 billion for the year, which is well above the record of $31 billion set in 2020.

Customer assets under custody have grown to a record $152 billion. Option contracts were up 47% year-over-year in Q3, bringing the year-to-date total to $1.2 billion, surpassing the high set in 2021. Total net revenue was posted at $637 million, which is the second-highest quarterly revenue in the company’s history and up 36% from last year. The year-to-date revenue is close to $2 billion, which has broken last year’s record of $1.9 billion.

Cryptocurrency revenue has surged and grown 165% year-over-year to $61 million. In June, Robinhood Markets, Inc. (NASDAQ:HOOD) agreed to acquire the global crypto exchange, Bitstamp, which has offices in the UK, US, Luxembourg, Slovenia, and Singapore. The acquisition will likely add further revenue streams for Robinhood in stablecoins, staking, and derivatives.

Wall Street analysts have a consensus BUY rating on the stock. It is among the top picks from the ARK Invest stock portfolio, representing 3.84% of its portfolio, with investments valued at over $420 million.