Ark Invest's strategy with Tesla TSLA is some iteration of buy low, sell high.
Chief Executive Cathie Wood said last week that when the stock is outperforming other holdings in Ark's portfolios, the firm will sell some shares and redeploy funds into other companies. And on the flip side, she said, Ark buys more shares in its favorite company when the stock is struggling.
This approach is one Ark seems to have widely adopted. The latest subject of the sell-high component of this strategy is TV-streaming platform Roku ROKU.
Related: Cathie Wood has a blunt warning about Tesla's stock over the coming months
Ark Innovation sold 251,419 shares of Roku Monday, a sale valued at roughly $21.1 million. Last week, the ETF trimmed its Roku holding by a total of around $35 million, a sale that was split over multiple days and across several of Ark's funds.
Despite the recent multimillion-dollar selloff, Roku remains Ark Innovation's second-largest holding. The fund's 7.1 million Roku shares, valued at just shy of $600 million, represent 8.66% of the ETF.
Despite the recent trimming, Ark Innovation's Roku holding still surpasses the firm's holding in Tesla, which has been falling recently, now making up 8.5% of the fund.
Roku Q3 revenue beat estimates
Ark's recent Roku trim began not long after the streaming giant posted third-quarter results, reporting revenue of $912 million, a 20% year-over-year increase that came in above analyst expectations of $855 million.
The company also reported 75.8 million active accounts for the quarter, an all-time high that also beat expectations, representing a 16% year-over-year increase.
The stock surged following the report, spiking 30% to $84 per share by Nov. 3. The stock closed the previous session at $83.97 and at last check was 5% higher at $88.13.
Roku shares have more than doubled (up 105%) this year and are approaching their August 52-week high of $98. They remain below pandemic-era highs: Roku stock spiked between 2020 and 2022, peaking at around $470 a share in 2021.
Analysts on average have a median price target of $86.50 for Roku, with a consensus "hold" rating.
Related: Cathie Wood reveals the truth behind Elon Musk's fruitless self-driving predictions
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