Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Entertainment
Rachit Vats

Cathie Wood Trims Spotify And Buys Netflix-Fueled Dip In These 2 Stocks

Cathie Wood-led Ark Investment Management on Wednesday raised its exposure in Roblox Corp (NYSE:RBLX) and Roku Inc (NASDAQ:ROKU) on the dip and sold shares in Spotify Technology SA (NYSE:SPOT) after streaming giant Netflix Inc (NASDAQ:NFLX) announced a massive fall in subscribers. 

The popular money managing firm bought 440,419 shares and 375,425 shares in Roblox and Roku, respectively. Based on Wednesday’s closing price for each stock, these trades are estimated to be worth $16.1 million and $41 million. 

Roblox shares closed 12.5% lower at $36.75 on Wednesday. Roku closed 6.2% lower at $109.57. 

Shares of entertainment stocks came under pressure on Wednesday after Netflix revealed it lost 200,000 users in the first quarter and provided gloomy guidance.

See Also: No Parallels Between Netflix And Tesla, Says Ark Analyst

St. Petersburg, Florida-based Ark Invest owns shares in Roblox through two of its six actively traded exchange funds: the Ark Innovation ETF (NYSE:ARKK) and the Ark Next Generation Internet ETF (NYSE:ARKW).

The two ETFs held 5.5 million shares, worth $231.9 million, in Roblox, prior to Wednesday’s trade.

In Roku, the asset management firm owns shares via ARKK and ARKW. The two ETFs held 7.49 million shares, worth $874.9 million in Roku, prior to Wednesday’s trade.

Ark Invest also sold 391,932 shares, estimated to be worth $48 million, in the music streaming company Spotify via ARKK and ARKW. The investment lowered its stake in Spotify by 9% on Wednesday. 

Spotify shares closed 10.8% lower at $122.5 a share on Wednesday. 

The money managing firm held 3.93 million shares, worth $540.8 million, in Spotify prior to Wednesday’s trade.

Photo courtesy: Roblox

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.