Robinhood shares tumbled 5.05% in pre-market trading on Friday, extending losses as selling pressure from Cathie Wood's Ark Invest and broader weakness in crypto-linked names weighed on the stock.

The decline follows a 2.78% drop on Thursday, when Ark sold 40,553 shares of Robinhood through its ARKW ETF. The continued rotation out of Robinhood by Ark has been a persistent theme in recent weeks, with Wood having sold $10.2 million worth of Robinhood shares just a day earlier on Wednesday.

Investors are also digesting weakness across crypto-linked stocks, a segment that remains critical to Robinhood's trading activity and growth narrative. The broader market pullback has added to the negative sentiment, compounding the impact of Ark's ongoing divestment from the online brokerage platform.