Cathie Wood Buys Robinhood, Bets on Crypto

0:00On this March 8 in Durham, here's what is making headlines. Kathy Wood of Arc Investment Management just bought 27.5 million dollars worth of Robinhood stock. The shares are down 31% this year so far. Wood sees big drops like this as prime buying chances for growth stocks and tech and crypto spaces. Arc Innovation, her main fund, has a rocky track record with huge ups and downs. It's soared over 150% in 2020, but plunged more than 60% in 2022. Right now, the fund lags to S&P 500, down about 7% year to date. Investors have mixed feelings about her bold moves. The fund has seen $1.2 billion in outflows over the past year. Still, Wood stays a beat, dismissing talk of an AI bubble and predicting a strong economic rebound by 2026. Robinhood relies heavily on crypto trading, which makes up over 17% of its revenue. Bitcoin's recent slum hurt its latest quarter, even as the company beat earnings estimates.

1:02Wood has boosted her stake, making Robinhood about 4.5% of the fund. Meanwhile, Bitcoin sits around $67,000 after a brief spike. Some analysts warn more drops ahead, but Wood bets on his long-term gains as a smart diversifier for portfolios. This episode is brought to you in partnership with our sponsor. When you need a moment alone, just lay back and listen. S-O-L-L-I, solelypillow.com