Editor’s note: An earlier version of this story incorrectly identified Robinhood Markets Inc.’s stock ticker as RH instead of HOOD. The error is regretted and has been rectified.
Streaming device manufacturer Roku, Inc.’s ROKU shares took a tumble on Friday after the company reported a year-over-year decline in fourth-quarter average user spending and issued disappointing guidance for the first quarter. Undeterred by the sell-off, Cathie Wood’s Ark Invest significantly increased its exposure to the company.
Ark Goes Roku Shopping: Ark, through three of its actively-managed exchange-traded funds, the Ark Innovation ETF ARKK, Ark Next Generation Internet ETF AKRW and Ark Fintech Innovation ETF ARKF, bought 1,492,781 Roku shares in aggregate.
At Roku’s closing price of $72 on Friday, the purchase was worth $107.48 million.
Roku is the third-biggest holding in Ark’s flagship ETF, the ARKK, with a portfolio weighting of 7.39%. ARKK alone holds about $621.5 million worth of Roku shares.
Close on the heels of Roku’s results, sell-side analysts cut their price targets for the stock, citing the muted outlook for platform growth and operating costs for the remainder of the year.
Ark also was a heavy buyer of online personal finance company SoFi Technologies, Inc. SOFI. ARKK and ARKF, together, added 2,070,380 SoFi shares valued at $17.31 million.
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Robinhood, Coinbase Shunned: Ark, however, trimmed its stake in two crypto-linked stocks Robinhood Markets, Inc. HOOD and Coinbase Global, Inc. COIN. The liquidations came despite the two stocks rallying strongly this week on the back of their quarterly results.
- On Friday Ark sold 480,166 Robinhood shares worth $6.72 million.
- The firm trimmed its Coinbase shares by 499,149 shares or $90 million, (in terms of value).
Ark’s flagship ARKK ETF closed Friday’s session down 2.54% at $50.33, according to Benzinga Pro data.
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