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 (NYSE: ARKW). Crowdstrike is the 26th largest holding of the fund, with a weight of 1.04%. Zoom Video Communications Inc (NASDAQ: ZM), Roku Inc (NASDAQ: ROKU) and Tesla Inc (NASDAQ: 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 (NYSE: SPOT) at an estimated valuation of over $4.5 million. Spotify shares closed over 5% on Wednesday.
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