Ark Invest, led by CEO Cathie Wood, is continuing to trim its holding in streaming giant Roku, selling a total of roughly $21 million worth of shares on Nov. 8. The move, spread across several of Ark’s funds, comes a day after Ark sold more than 170,000 shares of Roku in a trade worth about $14 million.
After this latest movement, Roku now accounts for 8.91% of Ark’s Innovation portfolio, the second-largest holding in the fund.
Reporting third-quarter earnings at the beginning of November, Roku noted $912 million in net revenue, a 20% increase from the same period last year that came in well above analyst expectations. The company, however, reported a net loss of about $330 million, significantly wider than the $122 million net loss it reported in the year-ago period.
Roku said that its operating expenses increased by $215 million compared to the same time last year.
Related: Cathie Wood pulls $14 million out of soaring software giant
The company additionally reported a record of 75.8 million active accounts for the quarter, a 16% increase that came in above analyst expectations.
Roku CEO Anthony Wood said in a statement that the company remains “cautious amid an uncertain macro environment and an uneven ad market recovery.”
Still, the stock jumped immediately after earnings, spiking by about 30% immediately following the report. Roku shares have remained in that same vicinity since.
Though Roku’s stock has fallen off its August 52-week high of $98.44, the stock remains up more than 100% for the year.
Some investors and analysts, however, are feeling nervous about the current quarter.
Last month, Wells Fargo analyst Steve Cahall said in a note that Roku’s earnings will take a hit in the fourth quarter due to “softness from ad trends.”
"We heard at our Advertising Day last month that scatter remains weak quarter-over-quarter, while Roku will also face a reduction in media and entertainment spend due to the ongoing Hollywood strikes," said Cahall wrote.
Roku has been growing steadily over the years since debuting in 2017 with shares priced initially at only $26. Ark Innovation holds a total of 7.5 million shares in Roku.
The stock ticked up slightly on Thursday.
