TLDR
- Cathie Wood’s ARK Invest doubled down on CoreWeave stock, purchasing 120,229 shares despite Wall Street’s cautious stance
- CoreWeave reported 207% year-over-year revenue growth to $1.2 billion in Q2 2025, driven by AI infrastructure demand
- ARK also bought $14.2 million worth of Robinhood shares after the platform’s crypto revenue jumped 98% to $160 million
- Robinhood’s crypto trading volume increased 32% to $28 billion in Q2, with the stock gaining 208.7% year-to-date
- Wall Street analysts remain divided on CoreWeave with a ‘Hold’ rating and average price target of $115.29
Cathie Wood’s ARK Invest made major moves in the tech sector this week. The firm purchased 120,229 shares of CoreWeave through its Next Generation Internet ETF on Friday.
Wood also bought $14.2 million worth of Robinhood shares on Monday. This followed a $9 million purchase of Robinhood stock just three days earlier.
The CoreWeave purchase shows Wood’s confidence in AI infrastructure companies. CoreWeave provides GPU-accelerated cloud services for artificial intelligence and machine learning applications.
The company reported strong financial results in its latest quarter. Revenue increased 207% year-over-year to $1.2 billion in Q2 2025.
CoreWeave works with major tech companies including Microsoft, Google, and OpenAI. These partnerships have driven demand for the company’s specialized computing services.
The stock has experienced volatility since its IPO at $40 per share. It peaked at $187 in the past 12 months before recent declines brought it below $100.
Mixed Wall Street Reception
Wall Street analysts remain divided on CoreWeave’s prospects. The company currently holds a ‘Hold’ rating from 16 analysts, with 6 ‘Buy’ ratings and 2 ‘Sell’ ratings.
The average analyst price target sits at $115.29. This represents a 15.32% upside from current levels.
Bank of America Securities reduced its price target to $168 from $185 after Q2 results. Analyst Bradley Sills cited concerns about backlog growth and regulatory uncertainty.
Morgan Stanley assigned a Hold rating with a $91 price target. Analyst Keith Weiss noted risks from customer concentration despite strong revenue growth.
CoreWeave lost $0.27 per share in Q2, slightly missing analyst expectations. The IPO lock-up period also ended, allowing insider selling that pressured the stock.
Robinhood’s Crypto Success
ARK’s Robinhood investment reflects the trading platform’s strong crypto performance. Robinhood’s crypto trading volume rose 32% year-over-year to $28 billion in Q2.
The company’s crypto revenue growth was even stronger. Transaction-based crypto revenue jumped 98% to reach $160 million in the second quarter.
Robinhood stock has gained 208.7% year-to-date. The shares closed at $115.02 on Monday after the latest ARK purchase.
The trading platform has expanded beyond its original zero-commission model. It now offers AI-powered tools and robo-advisory services to its 20 million users.
Robinhood operates its own Layer 2 blockchain infrastructure. This technology reduces settlement times and supports tokenized asset services.
The company has made strategic acquisitions to expand institutional offerings. It acquired crypto exchange Bitstamp and investment platform WonderFi to serve institutional clients.
Total platform assets reached $298 billion in the most recent quarter. The company continues attracting new users while expanding services for existing customers.
Regulatory challenges remain a concern for Robinhood. The company paid a $45 million SEC settlement in early 2025 over compliance issues.
CoreWeave faces similar regulatory scrutiny around its planned acquisition of Core Scientific. This deal remains under review and has created uncertainty among investors.
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