Cathie Wood’s Ark Invest on Monday offloaded a chunk of Roku, Inc. ROKU shares, shortly following the streaming device maker’s quarterly results released on Wednesday.
What Happened: Ark through its flagship Ark Innovation ETF ARKK sold 171,268 shares of Roku, which is valued at $1.43 million based on Monday’s closing price of $83.30. Despite the disposal, Roku remains ARKK’s top holding. The exchange-traded fund holds 7.92 million Roku shares valued at $659.80 million. It has a 9.42% weighting in the ETF.
Incidentally, Wood’s favorite stock, Tesla is ARKK’s third-biggest holding, after Coinbase.
Roku is also part of Ark’s Ark Next Generation Internet ETF ARKW and ARK Fintech Innovation ETF ARKF, which hold 1.47 million and 344,020 shares, respectively.
See Also: Best Media Diversified Stocks
Why It’s Important: After selling Roku through August, Ark maintained status quo in the stock in September. The Wood-led firm began bulking up on Roku in October before Monday’s divestment.
Roku’s third-quarter revenue exceeded expectation, although the EPS loss was wider than expected. The topline beat and the positive fourth-quarter revenue guidance set in motion roughly a 42% advance over the next two sessions. The stock on Monday gave back some of the gains and ended down 1.71% at $83.30, according to Benzinga Pro data.
In premarket trading on Tuesday, the stock fell an incremental 0.31% to $83.04.
See Also: Trading Strategies for Roku Stock Before And After Q3 Earnings
Photo: Ark Invest and Shutterstock
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