Cathie Wood was far from inactive in January. The Ark Invest CEO made significant moves on the last trading day of the month, enhancing eight existing portfolios while reducing three others.
Among the notable stocks Wood acquired on Friday are Amazon (AMZN +1.97%), Robinhood Markets (HOOD -8.71%), and Coinbase (COIN -2.81%). Despite a decline in all three stocks on Friday, let’s explore these recent investments further.
1. Amazon
Amazon, the largest online retailer in the U.S., is set to report its fourth-quarter earnings this Thursday. The company’s performance outlook for the typically strong holiday season is promising.
Amazon projects net sales of $206 billion to $213 billion for the last quarter of 2025, a 10% to 13% increase year-over-year. Operating profit forecasts are more varied, ranging from $21 billion to $26 billion, reflecting a potential decline or increase of up to 23% compared to last year. Analysts anticipate earnings per share to increase by 5% to around $1.95.
In recent years, Amazon’s sales growth has struggled, posting its weakest increases ever. However, investor optimism remains buoyed by Amazon Web Services (AWS), which, despite accounting for only 22% of net sales in the last quarter, generated two-thirds of Amazon’s net operating income. Wood’s decision to boost her Amazon stake shortly before earnings suggests she expects a strong performance.
2. Robinhood Markets
Robinhood Markets has felt the pressure from falling cryptocurrencies, which constitute a significant part of its revenue. Since October, Bitcoin prices have dropped by 40%, impacting Robinhood’s operations as options and crypto now represent 78% of its revenue sources.
As part of its strategy to maintain its around 26.89 million funded accounts during this challenging time, Robinhood is diversifying its offerings through partnerships in futures and predictive markets. They’ve recently expanded into tax services and estate planning as part of their growth strategy.
3. Coinbase
Coinbase, heavily reliant on cryptocurrency trading, has seen its stock value plummet considerably since its October peak coinciding with Bitcoin’s rise. Scheduled to report earnings next Thursday, analysts anticipate a significant drop in revenue and earnings per share due to a cooling crypto market, with predictions of a staggering 78% decrease in EPS alongside an 18% decline in revenue.
While Coinbase lacks the diverse revenue streams of Robinhood, its focused business model may serve it well when the crypto market rebounds. Wood’s investments in both Robinhood and Coinbase suggest confidence in their future recovery despite current challenges.
