Cathie Wood-led Ark Invest acquired over 1 million shares of the online education platform 2U Inc TWOU on Wednesday.
What Happened: The acquisition was divided among three of Ark's exchange-traded funds (ETFs), with the majority being secured through Ark Innovation.
Ark Innovation fund acquired over 800,000 shares of the company. Meanwhile, Ark Next Generation Internet obtained just under 150,000 shares, and Ark Autonomous Tech and Robotics added 110,568 shares to its portfolio.
Ark's holding in the company remains one of its smallest holdings across all three funds, reported The Street. Ark Innovation now owns 6.7 million shares of 2U, valued at a little over $20 million and weighted at 0.26% of the fund.
At present, Next Generation Internet's ownership of the company stands at a modest 1.2 million shares, while Ark Autonomous Tech and Robotics holds 722,608 shares.
The trajectory of 2U's stock has consistently declined over recent years. In September 2018, it reached a trading value of nearly $90 per share. The pinnacle was achieved in February 2021 at $55.
However, the trend has been downward since then, reaching a low of $13.15 over 52 weeks. Unfortunately, the stock experienced another considerable drop on Wednesday, plunging by 24% following an underwhelming earnings report.
According to the report, 2U experienced an 8% decline in revenue compared to the previous year, amounting to $222.1 million. This resulted in an adjusted net loss of 18 cents per share.
The recorded loss surpassed the predictions of analysts, who had estimated a loss of seven cents per share, alongside anticipated revenue of $234 million.
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