Robinhood's 40% Stock Plunge Fuels Cathie Wood's Big Bet On Trump's Next Move

Robinhood Markets Inc (NASDAQ:HOOD) stock looks less like a high-tech brokerage and more like a clearance rack. From a 52-week high of $153.86 to around $91, HOOD is trading at roughly a 40% discount to its peak, bruised by a brutal selloff that sliced 9.6% in a single session and nearly 22% off the year.

Yet in the middle of this drawdown, Cathie Wood didn't flinch — she leaned in. ARK quietly bought over 363,000 shares across ARK Invest funds, a $32.7 million contrarian wager that blends politics, policy, and price charts into one risky thesis.

Why Trump's Newborn Accounts Matter For HOOD

The market is treating HOOD like a melting ice cube, but Wood is looking years ahead.

Speculation around the proposed "Trump Accounts" — $1,000 index-focused investment accounts for newborns locked until age 18 — could turn Robinhood into the on-ramp for a generation of retail investors.

If that plumbing story sticks, Robinhood stops being just a trading app and starts looking like a long-term platform play.

HOOD Technicals Flash Oversold Signals

Chart created using Benzinga Pro

Technically, HOOD is underwater across nearly every major moving average.

At $91.10, the stock sits well below its eight-day ($100.54), 20-day ($108.41), 50-day ($116.52), and even the 200-day ($104.48) — a textbook bearish stack.

Momentum is still negative with the MACD (moving average convergence/divergence) indicator at a negative 6.52, but the RSI (relative strength index) near 25 signals deep oversold territory, a zone where sharp bounces often begin.

Key Levels Traders Should Watch

This isn't a hero buy; it's a patience play. Watch $85–$88 as a potential floor. A successful hold there with improving momentum could set up a relief rally back to the 200-day near $105, and later toward $115 if buyers regain control. Fail that zone, and the fire sale gets colder.

Right now, HOOD feels broken. But between a stretched chart and a potential policy catalyst, this could be the kind of ugly setup that breeds a memorable rebound — if the market blinks first.

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