Cathy Wood-led ark investment management bought a majority stake in digital media player-maker Roku Inc stop following its quarterly earnings release on Thursday.
Funds operated by ARK purchased more than 215,000 shares of Roku at an estimated valuation of more than $12 million based on Thursday’s closing price. The purchase was made through Flagship ARK Innovations ETF ARKKThe ARK Next Generation Internet ETF ARKW And this ARK Fintech Innovation ETF arkf,
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Roku reported total net revenue of $741 million which came below the consensus estimate of $801.69 million. Gross profit declined 7% year-over-year to $338 million. The company said it expects macro uncertainties to persist throughout 2023 and discretionary spending is likely to remain muted as consumers remain under pressure from inflation and recession fears.
“Against this backdrop, our outlook for the second quarter is for total net revenue of roughly $770 million, total gross profit of approximately $335 million and adjusted EBITDA of negative $75 million,” the company guided.
Shares of Roku are up more than 40% since the start of the year. led by Ark analysts last year nicholas gross said in a note that Roku shares would climb to $605 by 2026. So, it’s not surprising that Roku is the second largest holding in both the ARK Innovation ETF and the ARK Next Generation Internet ETF.
buy prime: ARK shares also jumped Robinhood Markets Inc hood At an estimated valuation of over $1 million based on Thursday’s closing price. Shares of Robinhood are down more than 9% over the past five days, potentially making it a good candidate for bottom fishing.