Shares of streaming device maker Roku, Inc. ROKU plunged over 23% Friday before settling at their lowest level in early-2019. Undeterred by the massive sell-off, Cathie Wood -run Ark Invest picked up large chunks of shares in the company.
What Happened: Ark, through its flagship ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW, and ARK Fintech Innovation ETF ARKF, bought 469,303 shares of Roku, valued at $30.8 million (based on Friday’s close).
As of July 29, Roku accounted for 7.7% of ARKK, 8.38% of ARKW, and less than 1% of ARKF.
Roku’s slump on Friday came on the back of a disappointing second quarter, with the company missing both top- and bottom-line expectations. Following the earnings report, a slew of analysts downgraded the stocks and reduced their price targets.
Cathie Wood’s firm, however, is optimistic about Roku. A revised valuation framework for the company released earlier this month showed the firm expects Roku shares to rally to $605 by 2026.
Ark Trims Robinhood Holdings: Ark’s ARKF sold 37,570 shares of trading app Robinhood Markets, Inc. HOOD. At Friday’s closing price of $9.05, the sale would have fetched ARK about $340,000.
Roku settled Friday’s session at $65.52, down a whopping 23.07%, and Robinhood edged down 0.66% to $9.05, according to Benzinga Pro data.
Image and article originally from www.benzinga.com. Read the original article here.