On a day when U.S. markets witnessed a bloodbath on the back of hotter-than-expected inflation data for August, Cathie Wood-led Ark Investment Management made some significant purchases through various exchange-traded funds. Wood bought over 250,000 shares of Roku Inc ROKU, through the flagship ARK Innovation ETF ARKK valued at over $17 million based on Tuesday’s closing price.
Roku is the third-largest holding of the fund, valued at over $620 million with a weight of 6.94%, according to the Ark website. It makes digital media players for video streaming and its players and TV-related audio devices are available in the U.S. and select countries through direct retail sales and licensing arrangements with service operators. On Sept. 1, the company announced the launch of Roku TV in Germany.
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Price Action: Shares of the firm have lost over 19% in one month. Wood’s purchase could be seen as a buy-on-dip, but notably, the company has withdrawn its full-year revenue growth rate estimate citing uncertainties and volatility in the macro environment in its second-quarter earnings statement.
For the third quarter, it estimates the total net revenue to increase approximately 3% to $700 million and total gross profit of roughly $325 million. However, Roku has projected a net loss of $190 million for the third quarter.
Zoom Video: Wood also purchased over 200,000 shares of Zoom Video Communications Inc ZM, valued at over $16 million, through the ARK Innovation ETF. The stock has lost over 30% in one month. Zoom is the second largest holding of the fund, valued at over $688 million.
Photo courtesy: Ark Invest
Image and article originally from www.benzinga.com. Read the original article here.