Cathie Wood Rushes To Lower Exposure In Zillow — Also Trims Tesla Stake And Buys These Stocks On Wednesday

Cathie Wood’s investment management firm Ark Invest on Wednesday significantly lowered its exposure in Zillow Group Class C Z ZG as the stock sank after the company reported a third-quarter loss and said it would be winding down its home buying business.

The popular money managing firm sold 3.9 million shares — estimated to be worth $256.9 million — in the online real estate marketplace company.

Zillow Class C shares closed 25% lower at $65.47 a share on Wednesday. The stock is down about 50% so far this year. 

The company said it plans to wind down its home buying unit, Offers. Zillow said it would also cut 25% of its workforce.

Just weeks after Zillow announced it would be pausing its iBuying of U.S. houses — Bloomberg reported this week that Zillow has actually sold 7,000 homes from its inventory.

See Also: Zillow Stock Sinks After Q3 Earnings: 7 Analysts React To iBuying Shutdown

Ark Invest deployed three of its active ETFs to sell the shares in Zillow. These are the Ark Innovation ETF ARKK, the Ark Next Generation Internet ETF ARKW and the Ark Fintech Innovation ETF ARKF.

The three ETFs held 10.59 million shares — estimated to be worth $924 million — in Zillow, ahead of Wednesday’s trade.  Ark Invest had piled up shares in Zillow ahead of the company’s third quarter results on Wednesday.

See Also: Cathie Wood Sells Another $94M In Tesla And Buys These Stocks Instead

Here are a few other key Ark Invest trades from Wednesday:

  • Bought 226,377 shares — estimated to be worth $64.7 million — in Zoom Video Communications Inc ZM on Tuesday. Shares of the company closed 1.92% higher at $285.66 a share.
  • Sold 17,787 shares — estimated to be worth $21.59 million — in Tesla Inc TSLA. Including the latest sale Ark Invest has sold about $1.44 billion worth of shares in Tesla since the start of September. Shares closed 3.57% higher at $1,213.86 a share.
  • Bought 722,344 shares — estimated to be worth $26.75 million — in Robinhood Markets Inc HOOD on the day shares closed 5.86% higher at $37.04 a share.
  • Bought 193,482 shares — estimated to be worth $9 million — in Draftkings Inc DKNG. The stock closed 1.6% lower at $46.84 a share.

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