Cathie Wood-led Ark Investment Management on Wednesday raised its exposure in Roblox Corp RBLX and Roku Inc ROKU on the dip and sold shares in Spotify Technology SA SPOT after streaming giant Netflix Inc NFLX announced a massive fall in subscribers.
The popular money managing firm bought 440,419 shares and 375,425 shares in Roblox and Roku, respectively. Based on Wednesday’s closing price for each stock, these trades are estimated to be worth $16.1 million and $41 million.
Roblox shares closed 12.5% lower at $36.75 on Wednesday. Roku closed 6.2% lower at $109.57.
Shares of entertainment stocks came under pressure on Wednesday after Netflix revealed it lost 200,000 users in the first quarter and provided gloomy guidance.
See Also: No Parallels Between Netflix And Tesla, Says Ark Analyst
St. Petersburg, Florida-based Ark Invest owns shares in Roblox through two of its six actively traded exchange funds: the Ark Innovation ETF ARKK and the Ark Next Generation Internet ETF ARKW.
The two ETFs held 5.5 million shares, worth $231.9 million, in Roblox, prior to Wednesday’s trade.
In Roku, the asset management firm owns shares via ARKK and ARKW. The two ETFs held 7.49 million shares, worth $874.9 million in Roku, prior to Wednesday’s trade.
Ark Invest also sold 391,932 shares, estimated to be worth $48 million, in the music streaming company Spotify via ARKK and ARKW. The investment lowered its stake in Spotify by 9% on Wednesday.
Spotify shares closed 10.8% lower at $122.5 a share on Wednesday.
The money managing firm held 3.93 million shares, worth $540.8 million, in Spotify prior to Wednesday’s trade.
Photo courtesy: Roblox
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