Why Is Cathie Wood's ARKK Selling Off Its Roku Stock?

As head of ARK Invest, Cathie Wood makes a splash whenever she buys or sells a stock. ARK is one of the most influential firms in the business today. The whole financial world, retail and institutional alike, pays close attention to her every move.

Cutting her teeth at firms like Capital Group and AllianceBernstein, Wood founded ARK in 2014, and is known for her big ideas and for making splashy predictions – like her belief Bitcoin BTC/USD will top $1M by 2030.

Her funds include extremely popular ETFs like her flagship fund, the ARK Innovation ETF ARKK, the ARK Genomic Revolution ETF ARKG, the ARK Next Generation Internet ETF ARKW, and the ARK Fintech Innovation ETF ARKF. 

Sell Off

Over the course of the last few weeks, Cathie Wood has been offloading the firm's holdings in Roku, Inc. ROKU. Across all of her firm's funds, Wood has sold stock in the streaming company totaling over $56 million. The move comes after Roku released its financials for q3. 

The report was largely positive, beating most expectations. Roku announced it has reached a record number of accounts, and most importantly, increased revenues a whopping 20% YOY.

One of Cathie Wood's guiding principles is picking companies she believes in long term and then continuously rebalancing her holdings based on performance. When a stock is overperforming she sells, and when a stock is underperforming, she loads up. This is what played out during this last sell-off of Roku stock, it still remains one of Wood's favorite stocks and the second-largest holding for her firm.

Max View 

For those who want to further maximize their view, leveraged funds can help. For example, the award-winning AXS 2X Innovation ETF TARK aims to return twice the daily return of ARKK. 

TARK was just awarded Best ETF Launch at Benzinga's 2023 Fintech Awards. The innovative fund was launched in May of 2022 and the care and skill with which the fund is operated is clear. 

For traders bullish on ARKK looking to trade TARK, check out this Must Read. It’s critical to be aware of how movements in the market and different chart patterns can inform smart trading.