Streaming device manufacturer Roku, Inc.’s ROKU shares experienced a significant drop on Friday following the company’s report of a year-over-year decline in fourth-quarter average user spending and disappointing guidance for the first quarter. Despite this setback, Cathie Wood’s Ark Invest made a bold move by increasing its exposure to the company.
Ark Invest, through three of its actively-managed exchange-traded funds, purchased a total of 1,492,781 Roku shares. At Roku’s closing price of $72 on Friday, the purchase was valued at $107.48 million. Roku currently holds the position of the third-biggest holding in Ark’s flagship ETF, the ARKK, with a portfolio weighting of 7.39%. ARKK alone holds approximately $621.5 million worth of Roku shares.
Following Roku’s results, sell-side analysts adjusted their price targets for the stock, citing concerns over the muted outlook for platform growth and operating costs for the remainder of the year. Despite this, Ark Invest remained confident in Roku’s long-term potential and made a significant investment in the company.
In addition to Roku, Ark Invest also increased its stake in online personal finance company SoFi Technologies, Inc. ARKK and ARKF added 2,070,380 SoFi shares valued at $17.31 million.
On the other hand, Ark trimmed its positions in two crypto-linked stocks, Robinhood Markets, Inc. and Coinbase Global, Inc. Despite the strong rally in these stocks following their quarterly results, Ark decided to reduce its exposure. Ark sold 480,166 Robinhood shares worth $6.72 million and 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. Despite the market fluctuations, Ark Invest continues to actively manage its holdings and seek out opportunities for growth in the evolving investment landscape.
Overall, Ark Invest’s recent moves in the market demonstrate its commitment to identifying and capitalizing on promising investment opportunities while also managing risk and adjusting its portfolio accordingly. As the investment landscape continues to evolve, investors will be closely watching Ark Invest’s strategies and decisions to gain insights into potential market trends and opportunities.
