Cathie Wood Loads Up $4.6M In Crowdstrike After Q3 Loss Widens, Offloads This Audio Streaming Stock

Cathie Wood Loads Up $4.6M In Crowdstrike After Q3 Loss Widens, Offloads This Audio Streaming Stock

Cathie Wood-led ARK Investment Management bought over 39,000 shares of cybersecurity technology company Crowdstrike Holdings Inc (NASDAQ: CRWD) at an estimated valuation of over $4.6 million on Wednesday.

The purchase was done via the ARK Next Generation Internet ETF ARKW. Crowdstrike is the 26th largest holding of the fund, with a weight of 1.04%. Zoom Video Communications Inc ZMRoku Inc ROKU and Tesla Inc TSLA are the top three holdings of the fund.

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Earnings Impact: On Tuesday, the company reported its earnings, registering a bigger net loss during the third quarter. GAAP net loss attributable to CrowdStrike stood at $55 million, compared to $50.5 million in the third quarter of fiscal 2022.

The company said that annual recurring revenue (ARR) increased 54% year-over-year and grew to $2.34 billion as of October 31, 2022, of which $198.1 million was net new ARR added in the quarter. 

George Kurtz, CrowdStrike’s co-founder and CEO, said total net new ARR was below expectations as increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates.

Shares of the company fell over 14% on Wednesday despite a Wall Street rally led by Federal Reserve Chair Jerome Powell’s comments on the potential slowing of the rate hike pace.

Major Sale: ARK sold over 57,000 shares of Spotify Technology SA SPOT at an estimated valuation of over $4.5 million. Spotify shares closed over 5% on Wednesday.

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Posted In: ARK Investment ManagementAudio streamingCathie WoodCybersecurityLong IdeasNewsBroad U.S. Equity ETFsShort IdeasMarketsTechTrading IdeasETFs