Cathie Wood’s Ark Invest on Monday offloaded a chunk of Roku, Inc. (NASDAQ:ROKU) shares, shortly following the streaming device maker’s quarterly results released on Wednesday.
What Happened: Ark through its flagship Ark Innovation ETF (NYSE:ARKK) sold 171,268 shares of Roku, which is valued at $1.43 million based on Monday’s closing price of $83.30. Despite the disposal, Roku remains ARKK’s top holding. The exchange-traded fund holds 7.92 million Roku shares valued at $659.80 million. It has a 9.42% weighting in the ETF.
Incidentally, Wood’s favorite stock, Tesla is ARKK’s third-biggest holding, after Coinbase.
Roku is also part of Ark’s Ark Next Generation Internet ETF (NYSE:ARKW) and ARK Fintech Innovation ETF (NYSE:ARKF), which hold 1.47 million and 344,020 shares, respectively.
See Also: Best Media Diversified Stocks
Why It’s Important: After selling Roku through August, Ark maintained status quo in the stock in September. The Wood-led firm began bulking up on Roku in October before Monday’s divestment.
Roku’s third-quarter revenue exceeded expectation, although the EPS loss was wider than expected. The topline beat and the positive fourth-quarter revenue guidance set in motion roughly a 42% advance over the next two sessions. The stock on Monday gave back some of the gains and ended down 1.71% at $83.30, according to Benzinga Pro data.
In premarket trading on Tuesday, the stock fell an incremental 0.31% to $83.04.
See Also: Trading Strategies for Roku Stock Before And After Q3 Earnings
Photo: Ark Invest and Shutterstock
