In a significant move on Tuesday, Cathie Wood-led Ark Invest made headlines by purchasing shares of Roku Inc (NASDAQ:ROKU) worth more than $25 million. This strategic acquisition comes amid a tumultuous period for Roku.
The Roku Trade
On Tuesday, Ark Invest purchased 383,483 shares across ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (NYSE:ARKW), and Ark Fintech Innovation ETF (NYSE:ARKF). The transaction was valued at $25.8 million. Roku shares closed 6.6% lower at $67.25 for the day.
Ark Invest's substantial investment in Roku underscores a strong belief in the company's long-term value, despite recent market volatility. Analysts have rallied behind Roku, citing an "almost perfect quarter" that failed to buoy the stock as expected.
Roku shares fell due to a decline in fourth-quarter user spending and disappointing guidance for the first quarter. Despite this, Ark Invest increased its investment in Roku last week, buying 1,492,781 shares worth $107.48 million. Roku is the third-largest holding in Ark's flagship ETF, ARKK.
The Coinbase Trade
Following the Roku narrative, Ark's trading activity also highlighted adjustments in other high-profile holdings like cryptocurrency trading platforms Coinbase Global Inc (NASDAQ:COIN) and Robinhood Markets Inc. (NASDAQ:HOOD). Both firms allow users to purchase digital assets like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
On Tuesday, Ark Invest sold 28,731 Coinbase shares, valued at $4.97 million through ARKK, ARKW, and ARKF. For the day, Coinbase shares closed 3.9% lower at $173.30.
The firm also reduced its stake in Coinbase on Friday, amidst a backdrop of regulatory uncertainties and market dynamics.
The Robinhood Markets Trade
The firm also sold 295,082 shares of Robinhood. The transaction, made through ARKW and ARKF, was valued at $4.16 million. Robinhood shares closed 0.6% higher at $14.09 on Tuesday.
Recently, analysts responded positively to Robinhood's fourth-quarter results, with KeyBanc Capital Markets, Piper Sandler, JMP Securities, Mizuho Securities, and Needham all issuing favorable assessments. They highlighted strong revenues driven by crypto and options trading, robust net deposit trends, and growth in Robinhood Gold subscribers, leading to raised price targets and ratings.
Other Key Trades:
- Unity Software Inc (NYSE:U) saw a significant increase in shares bought across multiple Ark funds, signaling a bullish stance on the gaming and software development sector.
- 10X Genomics Inc (NASDAQ:TXG) purchases reflect Ark's ongoing interest in cutting-edge genomic and biotech companies poised for growth.
- Sales of Twilio Inc (NYSE:TWLO) and Zoom Video Communications (NASDAQ:ZM) were made through multiple ETFs.