Why Cathie Wood Bought $72.4M In Twitter As Stock Tanked Post Earnings-Report

Cathie Wood-led Ark Investment Management bought over 1.3 million shares, worth about $72.42 million, in Twitter Inc TWTR on Friday as the stock slumped after the social media company reported lower-than-expected user growth in the first quarter.

Why Ark Sees Upside To TWTR: Twitter shares closed 15.16% lower at $55.22 on Friday. The stock has a 52-week high of $80.75 and a low of $27.12.  

The investment firm bought the shares of the San Francisco-based company via two of its funds; the Ark Innovation ETF ARKK and the ARK Next Generation Internet ETF ARKW.

See also: How to Buy Twitter (TWTR) Stock

Twitter is ARKK's thirty-fourth largest investment among a total of 58 stocks and ARKW's eighth largest investment among a total of 53 stocks.

Twitter reported year-over-year revenue growth of 28% to $1.04 billion in the first quarter, lower than peers. The social media company grew its monetizable daily active users (mDAUs) 20% year-over-year to 199 million, just shy of the 200 million expected.

“Given the recent product announcements centered around Twitter Spaces, a live audio feature, we believe that future user growth could surprise to the upside,” Ark said in a note to investors over the weekend.

Other Trades: Ark Investment Management continued to snap up Teladoc Health Inc TDOC, buying a total of 261,041 shares worth about $44.99 million on Friday in the telemedicine company, via the Ark Genomic Revolution ETF ARKG, ARKK and the ARKW.

See Also: Cathie Wood Piles Up Teladoc As Shares Slump On Q1 Miss, Also Adds More Tesla

The New York-based investment firm also bought 73,019 shares, via ARKW, of the Chinese e-commerce giant Pinduoduo Inc PDD amid reports of China’s fresh regulatory probes against tech giants.

See Also: Cathie Wood Can't Get Enough Of These 3 Chinese Alibaba Rivals

Other Ark Buys On Friday:

• CM Life Sciences II Inc CMIIU
• Zymergen Inc ZY
• 908 Devices MASS 
• Recursion Pharmaceuticals RXRX
• Ionis Pharmaceuticals Inc IONS
• Iridium Communications IRDM 
• Jaws Spitfire Acquisition SPFR
• Galileo Acquisitions Corp GLEO
• 3D Systems Corp DDD
• Tencent Holdings Ltd TCEHY

Other Ark Sells On Friday:

• Phreesia PHR
• Pluristem Therapeutics PSTI
• Pure Storage Inc PSTG
• PACCAR PCAR
• Roku Inc ROKU
• Sea Ltd SE
• Teradyne Inc TER
• Organovo Holdings Inc ONVO
• Zillow Group ZG
• Nvidia Corp NVDA
• Silvergate Capital SI
• Agora Inc API
• PayPal Inc PYPL
• LendingTree Inc TREE