Roku, Inc.’s (ROKU) shares experienced a significant drop after reporting a year-over-year decline in fourth-quarter user spending and issuing a disappointing first-quarter guidance. Nevertheless, Cathie Wood’s Ark Invest made a bold move by significantly increasing its exposure to the company.
Ark, via three of its actively-managed exchange-traded funds (ETFs) – the Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (AKRW), and Ark Fintech Innovation ETF (ARKF) – acquired 1,492,781 Roku shares, valued at $107.48 million based on Friday’s closing price of $72.
Roku holds the third-largest position in Ark’s flagship ETF, ARKK, with a portfolio weighting of 7.39%, amounting to about $621.5 million worth of Roku shares in ARKK alone.
Following Roku’s results, sell-side analysts slashed their price targets for the stock, emphasizing the subdued prospects for platform growth and operating costs throughout the year.
Ark also significantly increased its position in SoFi Technologies, Inc. (SOFI) by adding 2,070,380 SoFi shares worth $17.31 million through ARKK and ARKF.
Conversely, Ark divested holdings in two crypto-linked stocks, Robinhood Markets, Inc. (RH) and Coinbase Global, Inc. (COIN), despite both stocks witnessing a strong rally this week following their quarterly results.
- Ark sold 480,166 Robinhood shares amounting to $6.72 million on Friday.
- The firm trimmed its Coinbase shares by 499,149 shares, representing a value of $90 million.
Ark’s flagship ARKK ETF concluded Friday’s session with a 2.54% decline, closing at $50.33, according to Benzinga Pro data.
Read Next: Cathie Wood’s Ark Sells Coinbase Shares Amid Bitcoin Rally Despite Surprise Quarterly Profit — Nvidia, Alphabet Stocks Also Shed
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