It's been a rough year for Robinhood Markets (HOOD 0.54%), GeneDX Holdings (WGS 3.02%), and Tesla Motors (TSLA 0.69%) investors, and it's only early April. The three growth stocks are down 38%, 49%, and 23% in 2026, respectively. They might not have a lot of fans these days, but growth investor Cathie Wood is a believer.
The founder and CEO of Ark Invest bought shares of the three year-to-date laggards on Tuesday, adding to existing positions across her company's widely followed ETFs. Let's take a closer look at these latest purchases by a money manager who has excelled in bull markets.
Image source: Getty Images.
1. Robinhood Markets
Shares of Robinhood opened sharply higher on Wednesday following the news of a two-week ceasefire in Iran, but the next-gen trading platform has had a rough run in recent months. Most brokerages would love to be posting the 27% top-line growth that Robinhood delivered in its latest quarter, but it's the weakest increase in two years.
The first quarter that ended last week -- and that Robinhood will discuss later this month -- isn't likely to be any better. Analysts expect year-over-year revenue growth for the quarter to decelerate to 26%, and they overestimated the top-line move in the fourth quarter. The earnings growth that Wall Street pros pegged at a nearly 60% jump just three months ago is now a third of that.
NASDAQ: HOOD
Key Data Points
The struggles are real. Robinhood is a trading platform that helps its largely young user base trade options, crypto, and stocks (in that order, by transaction-based revenue). The market's rough sledding this year has dampened trading activity. If you think the stock market has had its challenges, the top cryptocurrency has plummeted more than 40% since peaking in October.
Adding insult to injury, some of the investments made by Robinhood users in recent months were on margin. Leverage can be a wealth creator in bull runs, but it comes biting back with margin calls when speculative wagers go the wrong way.
Robinhood has turned to new outlets for growth. Trading in futures and predictive markets will keep its users close, but the market will have to play along for the upticks to keep coming. Wednesday's initial jump is encouraging, but now the market needs to string a few more Wednesdays together.
2. GeneDx Holdings
There aren't many happy endings for companies that announce reverse stock splits, but GeneDX seemed to be an exception to the rule until just a few months ago. Three years after a 1-for-33 reverse stock split, the provider of exome and genome sequencing services to help diagnose rare and inherited diseases seemed to be back on track.
NASDAQ: WGS
Key Data Points
Revenue soared 40% to $427.5 million last year, following a 51% jump the year before. By the time it peaked in December, GeneDX was a 22-bagger since its reverse split in the spring of 2023. It's been mostly downhill since then -- with the shares plummeting more than 60% since peaking four months ago -- but GeneDX remains a market beater since its unpopular split to regain exchange compliance.
GeneDX isn't fading away despite its unfortunate recent stock activity. Analysts see revenue growth of at least 20% in each of the next four years. It's been profitable on an adjusted basis since 2024, but Wall Street pros see that happening on a reported basis come next year. The stock has corrected after a monster rally since early 2023, but there is still plenty to like at today's more attractive entry point.
3. Tesla Motors
The world's most valuable automaker by market cap was one of just two stocks Wood bought on Monday. A day later, it returned as just one of four companies she purchased. Despite posting its first year of declining revenue in 2025, analysts see it growing again this year and beyond.
NASDAQ: TSLA
Key Data Points
The market for electric vehicles is going through growing pains right now, and Tesla competitors are faring even worse. Tesla is hoping innovations in self-driving taxis and consumer robotics will get it back on track. Despite recently ending production of its two oldest car models, Tesla continues to deliver double-digit growth in its energy and services businesses.
Tesla remains Ark Invest's largest holding. At nearly 9% of its combined holdings, it's almost twice its second-largest stake. Wood is a believer, and the stock's recent shift into reverse is a good opportunity to make the most of Tesla's ability to accelerate quickly when the light turns green.
