Is Robinhood Markets (HOOD) the Best Stock from Cathie Wood’s Portfolio to Buy Now?

Core Insights - Robinhood Markets Inc. is identified as one of the top 10 stocks to buy from Cathie Wood's ARK Investment Management portfolio, despite a significant reduction in its position by nearly 36% in Q3 [1] - The company plans to launch a new futures and derivatives exchange and clearinghouse, aiming to enhance its presence in prediction markets [2] - The exchange will operate through a joint venture with Susquehanna International Group, with operations expected to begin in 2026 [3] Financial Performance - ARK's stake in Robinhood was valued at approximately $718 million, representing around 4.3% of its 13F portfolio [1] - The prediction markets revenue growth has accelerated, with over 9 billion contracts traded by more than 1 million users in the first year of launch [2] Market Positioning - The joint venture will acquire MIAXdx, a CFTC-licensed Designated Contract Market and Derivatives Clearing Organization, to enhance regulatory readiness [3] - Analyst Gautam Chhugani reaffirmed a Buy rating on Robinhood with a price target of $160, indicating a strong consensus Buy with a 1-year median price target of $155, representing a potential 34% upside [4] Company Overview - Robinhood is a U.S.-based retail brokerage and trading platform that allows individual investors to trade various financial instruments through a zero-commission model [5]