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Cathie Wood buys $9.1 million of tumbling tech stock

Filed Under: SUCCESS, The Street

Cathie Wood, head of Ark Investment Management, often buys her favorite tech stocks when their prices fall.

This time, she’s buying Robinhood Markets (HOOD), adding shares after the online brokerage’s stock dropped following its third-quarter earnings report.

Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 11.96% as of Oct. 28, while the S&P 500 surged 13.13%, Yahoo Finance data shows.

Wood gained a reputation after the Ark Innovation ETF delivered a rosy 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the ETF tumbled more than 60%.

Those swings have weighed on Wood’s long-term gains. As of Oct. 28, her Ark Innovation ETF has delivered a five-year annualized return of -6.54%, while the S&P 500 has an annualized return of 11% over the same period, according to data from Morningstar.

Cathie Wood remains optimistic about AI and tech revolution

Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She believes these businesses have strong growth potential, but their volatility often causes fluctuations in the Ark’s funds.

Over the decade ended 2025, the Ark Innovation ETF wiped out nearly $5 billion in investor wealth, according to a report by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer among mutual funds and ETFs in the ranking. 

Wood defended her investment strategy after an audience member at a recent summit questioned ARK’s performance compared with the Invesco QQQ Trust (QQQ).

Related: Cathie Wood buys $24.5 million of tumbling megacap stock

“Investors deserve to understand both their returns and the decisions behind them,” Wood said in a post on X on Oct. 5.

She argued that the ARK Innovation ETF (ARKK) and QQQ are built differently. QQQ tracks the Nasdaq-100 Index, while ARK actively invests in companies it believes are driving disruptive innovation across industries, including healthcare, financial services, and transportation.

Wood has long been optimistic about AI, which she sees as a major driver of productivity, economic growth, and corporate profits in the years ahead. She has also pushed back against recent fears that AI could pose an existential threat to humanity.

In September, Wood reposted a post by David Sacks on X, saying he makes a good case that the “AI will kill humanity” headlines were orchestrated.

Meanwhile, she acknowledged that AI, like other technologies, can be used for harmful purposes. She said people such as Elon Musk who highlight AI’s potential risks are “doing us a great service,” adding that “half of the solution—including AI—is understanding the problem.”

In August, Wood said U.S. corporate profits remain unusually strong, with domestic profits before tax at 13.2% of GDP, a level she said is near multi-decade highs. 

Some of that strength came from the massive monetary and fiscal stimulus during the pandemic, but Wood believes another factor is helping sustain margins today: companies are leaning into AI and productivity gains to protect them.

“I think we’re still early in seeing how far that can go,” she said, adding that companies that use AI effectively will “separate themselves from the ones that don’t.”

Not all investors agree with Wood’s optimism. Over the past 12 months through Oct. 27, the Ark Innovation ETF saw roughly $1.46 billion in net outflows, according to data from ETF research firm VettaFi. 

Bloomberg / Getty Images

Cathie Wood buys $9.1 million of Robinhood stock

On Oct. 28, Wood’s Ark funds bought a total of 99,418 shares of Robinhood Markets Inc. (HOOD), according to Ark’s daily trading information sent to TheStreet. These shares were worth about $9.1 million based on the latest closing price of $91.43.

Robinhood (HOOD) operates a commission-free trading platform that allows users to trade stocks, options, and cryptocurrencies. The company makes money from transaction-based revenue, interest on customer cash, margin lending, and subscriptions.

Related: Cathie Wood sells $16 million of surging tech stock

Robinhood shares fell 3.3% on Oct. 28 and slipped another 0.5% on Oct. 29 as investors reacted to weaker-than-expected third-quarter earnings, bringing the stock’s year-to-date decline to roughly 19%.

The company reported earnings of 51 cents per share, below Wall Street’s estimate of 56 cents, according to LSEG data pulled by CNBC. Revenue rose 12% year-over-year to $1.42 billion, matching expectations.

Net income fell to $468 million from $556 million a year earlier.

Robinhood has been expanding beyond its core brokerage business into prediction markets, wealth management, and subscription services.

Transaction-based revenue increased 19% to $867 million but missed analysts’ expectations of $879 million. Cryptocurrency revenue plunged 55% to $120 million, offsetting some gains.

Some analysts lowered Robinhood’s stock price target following the earnings report.

Mizuho lowered its price target on Robinhood to $130 from $140 while maintaining an Outperform rating, according to The Fly.

The firm described Robinhood’s third-quarter results as “very solid” but pointed to slower-than-expected growth in prediction markets in September and “less-stellar” trends in October.

Still, Mizuho believes Robinhood is focused on long-term growth and sees the recent stock pullback as a buying opportunity.

KeyBanc also cut its price target on Robinhood to $135 from $140 while maintaining an Overweight rating.

The firm said Robinhood’s third-quarter results were mixed, as strong trading volumes were offset by weaker-than-expected revenue generated from certain products.

KeyBanc slightly lowered its estimates after factoring in October trends but remains positive on Robinhood’s ability to gain market share, launch new products, expand into new markets, and attract more users through 2027.

Robinhood had long been a top 10 holding of Wood’s Ark Innovation ETF. But as Wood added to other positions and their shares gained value, Robinhood slipped to 11th place in the fund’s portfolio.

Top 10 Holdings in the Ark Innovation ETF by market value and weight as of Oct. 28, 2026:

Tesla (TSLA): $693.98 million, 10.65%

SpaceX (SPCX): $399.44 million, 6.13%

Tempus AI (TEM): $365.59 million, 5.61%

Circle Internet Group (CRCL): $305.10 million, 4.68%

CRISPR Therapeutics (CRSP): $289.29 million, 4.44%

Coinbase (COIN): $257.25 million, 3.95%

OpenAI (Series C): $249.37 million, 3.83%

Twist Bioscience (TWST): $231.93 million, 3.56%

Shopify (SHOP): $202.58 million, 3.11%

Nvidia (NVDA): $190.87 million, 2.93%

Other than Robinhood, Wood bought shares of Teradyne (TER), Cerebras Systems (CBRS), Archer Aviation (ACHR), Joby Aviation (JOBY), AeroVironment (AVAV), Kodiak AI (KDK), and Beam Therapeutics (BEAM).

On the selling side, she trimmed stakes in Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSM), Tempus AI (TEM), Twist Bioscience (TWST), 10x Genomics (TXG), Rubrik (RBRK), Cloudflare (NET), and CrowdStrike (CRWD). She also sold shares of the ARK 21Shares Bitcoin ETF (ARKB).

Related: Analyst revamps SK Hynix stock price target after blockbuster earnings

Where Americans Spend the Most (and Least) on Groceries

Filed Under: Clark Howard, SUCCESS

Have you ever gotten that sinking feeling at the supermarket checkout line? You watch the register ring up item after item, and before you know it, the total blows right past your weekly food budget — even though your cart isn’t even full.

Between persistent inflation and volatile supply chains, essential grocery staples take a serious bite out of household budgets. But how hard food bills hit your wallet often depends on where you call home.

A study from WalletHub analyzed the prices of 26 common grocery items across 100 of the largest U.S. cities and compared them against median household incomes. The goal? To determine where everyday essentials consume the largest — and smallest — share of local paychecks.

Here is a look at where grocery costs hurt household budgets the most, where they hurt the least, and what you can do right now to cut your grocery bill down to size.

The 10 Most Expensive Cities for Groceries (as a Share of Income)

In the cities at the top of the list, high grocery costs are rarely just about retail shelf prices. In many cases, lower median earnings mean routine supermarket trips eat up a disproportionate percentage of household earnings.

RankCityCost of Groceries as a Share of Median Monthly Household Income

1Detroit, MI4.03%

2Cleveland, OH3.93%

3Birmingham, AL3.45%

4Toledo, OH3.20%

5Newark, NJ3.15%

6Baton Rouge, LA3.11%

7Buffalo, NY3.10%

8Memphis, TN3.07%

9Cincinnati, OH3.05%

10Hialeah, FL2.99%

Source: WalletHub

Detroit and Cleveland top the ranking, with residents spending roughly 4% of their median monthly income on the same basket of 26 staple items. While prices for certain items like lettuce in Detroit or soft drinks in Cleveland rank higher than average, the primary culprit is lower median annual income — making every price jump feel more painful.

The 10 Least Expensive Cities for Groceries (as a Share of Income)

At the opposite end of the spectrum, higher median household incomes cushion the blow of checkout register totals, even in metro areas known for high overall costs of living.

RankCityCost of Groceries as a Share of Median Monthly Household Income

1Fremont, CA0.91%

2San Jose, CA1.07%

3San Francisco, CA1.10%

4Irvine, CA1.21%

5Gilbert, AZ1.32%

6Santa Clarita, CA1.34%

7Huntington Beach, CA1.42%

8Seattle, WA1.44%

9Plano, TX1.46%

10Scottsdale, AZ 1.46%

Source: WalletHub

In Fremont and San Jose, California, spending on the standard grocery basket takes up roughly 1% or less of median monthly income. Even though shelf prices in coastal California and Seattle are rarely low, higher local wages mean households absorb the cost of everyday food items far more easily.

Clark-Smart Tips: How To Reduce Your Grocery Bill

You can’t control regional economic factors, but you can control what leaves your wallet at checkout. According to our guide to saving money on groceries, a few strategic changes to your shopping routine can yield massive annual savings:

Switch to store brands: This is the single easiest way to cut your bill without clipping a single coupon. As Clark Howard says: “Try a store brand just once the next time you’re at the supermarket. If you like what you buy, you save money that time and every time going forward when you buy it again.” If you don’t like it, almost every major chain guarantees a return or exchange.

Rethink where you shop: Routine can be expensive. Try hard discounters like Aldi and Lidl for your everyday pantry basics, warehouse clubs like Costco or Sam’s Club for bulk non-perishables, and local supermarkets for big discounts on produce, spices, and meats.

Shop the “loss leaders”: Supermarkets regularly sell front-page circular items at razor-thin margins — or even at a loss — just to get foot traffic in the doors. Build your weekly meal plan around these loss leaders and staple proteins on sale rather than deciding what to cook before seeing the weekly ad.

Always check the unit price: Never judge a deal by the big bold sticker price. Check the shelf tag’s unit price (price per ounce, pound, or count) to see whether the “family pack” or promotional size is actually the better deal.

Cut down on convenience markups: Pre-cut fruit, shredded cheeses, and individually portioned meats carry enormous markups. Doing just 15 minutes of prep at home keeps that money in your pocket.

Final Thoughts

Whether you live in a city where grocery spending takes a big chunk out of your paycheck or you are simply tired of higher register totals, you do not have to settle for runaway food bills.

You don’t need to become an extreme couponer to see real progress. Start small: Audit your pantry before you leave the house, test one or two store-brand items each trip, and build your meals around what’s on sale. Consistency adds up quickly, and taking back control of your cart is one of the fastest ways to put hundreds of dollars back into your budget this year.
The post Where Americans Spend the Most (and Least) on Groceries appeared first on Clark Howard.

Clark Howard’s Top Strategies for Lowering Winter Heating Costs

Filed Under: Clark Howard, SUCCESS

When winter rolls in, it’s easy to feel helpless about what it’s going to do to your wallet. High utility bills seem inevitable when temperatures plummet, but that is only partially true. You don’t have to just sit there and take it — there are concrete steps you can take to keep more of your hard-earned money in your pocket.

Here is what you need to know about energy costs this winter and how you can take control of your heating bill.

The Home Heating Oil Crunch

If you heat your home with heating oil, this season is shaping up to be really, really ugly.

This hits folks in New England especially hard — even more so than other parts of the Northeast — because winter can be so much longer, harsher, and colder. It creates stark, painful choices: Do you just freeze? Can you afford to fill your tank? Will you be able to pay the rest of your bills?

These are brutal decisions, which is why I want to bring back a strategy I haven’t recommended since home heating oil prices last went crazy: zone heating.

Why You Should Consider Zone Heating with a Modern Space Heater

Zone heating simply means you only heat the space you are actively using, rather than paying a fortune to keep empty rooms toasty. It’s a common practice across much of the world, but here in the United States, we’ve always had a habit of heating entire houses at once.

Here is how you make it work:

Lower the central thermostat: Keep the rest of your home cooler than you normally would.

Warm the room you’re in: Use a small, portable electric space heater to keep the immediate area comfortable.

Now, I know what many of you are thinking: “Clark, aren’t space heaters fire hazards?”

It’s true that older space heaters were notorious for causing horrific, tragic fires. But modern space heaters have come a long way. Today’s models are engineered with safety shut-offs, cool-touch exteriors, and tip-over sensors that make them vastly safer than units from decades ago.

On top of that, they draw relatively small amounts of electricity and are inexpensive to run. If you rely on costly home heating oil, turning down the central furnace and using a safe, modern space heater can be a meaningful alternative that saves you serious cash.

What About Natural Gas?

For the majority of Americans who heat their homes with natural gas, there is some relatively good news this year: prices are not crazy high. Thanks to a substantial amount of new supply coming online, natural gas prices shouldn’t hit you with an ugly surprise on your monthly statement.

While that offers welcome relief, it’s not an excuse to waste money. Taking simple, low-cost precautions will still lower your utility bills and leave more cash in your wallet.

Low-Cost Ways to Winterize Your Home

Regardless of what fuel source you use to heat your home, the fundamentals always matter:

Seal air leaks: Buy inexpensive caulk and weatherstripping at your local home improvement store. Sealing drafts around windows, door frames, and baseboards is one of the cheapest, highest-return DIY projects you can do.

Check your insulation: Proper insulation in your attic and walls keeps expensive heat from escaping into the cold. (Note for New Englanders: If you own an older home, be cautious about how you insulate. Certain types of insulation don’t always play well with older construction and moisture barriers, so do your homework first.)

Control your thermostat: If you work a regular schedule, use a programmable thermostat to automatically drop the temperature while you’re out for the day, then bring it back up to a comfortable level shortly before you arrive home. If you have a busy household with kids and fluctuating schedules, a smart thermostat can learn your family’s daily habits and automatically optimize temperatures to prevent waste.

Final Thoughts

At the end of the day, lowering your winter heating bills comes down to controlling what you can control.

You don’t have to spend a fortune on major renovations to see a difference. By taking an active approach — sealing drafts, managing your thermostat, and considering targeted zone heating — you can make your home far more efficient and keep your winter energy costs manageable.
The post Clark Howard’s Top Strategies for Lowering Winter Heating Costs appeared first on Clark Howard.

Is Your Social Security Taxable? Where Your State and Income Put You

Filed Under: Money.com, SUCCESS

Social Security can be a significant income source for many people in retirement. But it’s important to understand whether — and how much — taxes will chip away at your benefits.
Your location and income play key roles in determining how much you’ll have to pay, if you even get taxed at all. Here’s how to figure out whether your benefits will be taxed and how to determine which rate to expect.

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How federal taxes are determined
The combined-income formula is the federal test that determines if your benefits are eligible for taxation. It requires adding up your modified adjusted gross income, tax-exempt interest and one-half of your Social Security benefits.
For single filers, if your combined income is below $25,000, you don’t pay federal taxes on your benefits. If you are in the $25,000 to $34,000 range, up to 50% of your benefits may be eligible for taxation. Finally, you may be eligible for up to 85% of your benefits being taxed if your combined income exceeds $34,000.
The math works differently for married couples. If their combined income is under $32,000, none of their benefits are taxed. The $32,000 to $44,000 threshold results in up to 50% of your benefit being taxed, and earning more than $44,000 in combined income results in up to 85% of your benefits being eligible for taxation.
How state taxes are determined
Most states do not tax benefits, including Washington, D.C. Only eight states tax benefits, and most of them have income-based exemptions.
Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont are the only states that tax Social Security, but you may be exempt depending on your age and income.
What else to know about the taxes on Social Security
While up to 85% of your benefit may be eligible for taxation if you are in the highest threshold, that doesn’t equate to a 85% tax rate. Any amount of your benefit that is eligible for taxation goes through the same tax rates as ordinary income.
Couples and single filers can file Form W-4V to withhold a portion of every Social Security check for taxes. While it results in less income right now, it also prevents an April surprise in the form of a big tax bill.
People who do not withhold any of their benefits over time risk a large tax bill that they may not be able to pay. Anticipating your tax rate and withholding some of your Social Security makes it easier to plan around taxes when April arrives.
And remember, you don’t have to guess how much you’ll owe in taxes on your Social Security benefits. You can put last year’s numbers into the IRS Publication 915 worksheet to see how much you will owe. It offers a valuable snapshot of what you can expect to pay so that you can be better prepared.

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