In the run to the fourth-quarter earnings report from Twitter, Inc. (NYSE:TWTR), Cathie Wood's Ark Invest offloaded a chunk of shares of the short-messaging social media app.
What Happened: Ark Invest sold 3,944,718 shares of Twitter on Monday, according to a daily trade report from the money manager showed. At Monday's closing price of $36.04, the sale is worth $142.17 million.
The bulk of the liquidations were from Ark's flagship ARK ETF Trust - ARK Innovation ETF (NYSE:ARKK). Following the disposal, Twitter accounted for about 1.105% of the ETF's holdings.
Ark Invest sold 280,974 shares of Twitter from ARK Next Generation Internet ETF (NYSE:ARKW).
Related Link: What's Going On With Twitter's Stock? A Technical Look
Why It's Important: Twitter is scheduled to report its fourth-quarter results before the market opens on Thursday. The company is widely expected to report earnings of 35 cents per share, lower than 38 cents per share one year ago. Revenues are expected to climb 22.3% to $1.58 billion.
Jefferies analyst Brent Thill recently lowered his price target for Twitter shares from $45 to $45. The analyst said he is bracing for a "challenging fourth quarter," given the recent management transition and reorganization, and far less conservative guidance relative to peers.
Shares of bigger social media rival Meta Platforms, Inc. (NASDAQ:FB) plummeted last week in reaction to its quarterly results.
ARK's Other Notable Traders: Ark Invest bulked up on Sea Limited (NYSE:SE) and Roblox Corporation (NYSE:RBLX). The fund bought over 500,000 shares in the former and 729,695 shares of the latter.
The firm also continued to snap up Tesla, Inc. (NASDAQ:TSLA), picking up 23,992 shares on Monday.
Related Link: Why TikTok Might Turn Out To Be Meta Platform's 'Formidable Foe'
