News

Cathie Wood Watch: Ark Buys Zoom, Sells Key Entertainment Name

Ark’s Wednesday purchases included $12 million of Shopify and $10 million of Zoom. Ark sold a major entertainment provider.

Author:

Dan Weil

Publish date:

Mar 3, 2022 10:44 AM EST

Investment star Cathie Wood, chief executive of Ark Investment Management, continues to buy beleaguered technology stocks, as she promised she would.

On Wednesday, Ark exchange-traded funds purchased shares of video-meetings platform Zoom Video Communications  (ZM) – Get Zoom Video Communications, Inc. Class A Report, e-commerce titan Shopify  (SHOP) – Get Shopify, Inc. Class A Report, video streaming platform Roku  (ROKU) – Get Roku, Inc. Class A Report and digital entertainment company Sea Ltd.  (SE) – Get Sea Ltd. (Singapore) Report. Ark also sold shares of Disney  (DIS) – Get Walt Disney Company Report.

Ark funds bought 82,895 shares of Zoom, valued at $10.1 million as of Wednesday’s close. Ark Next Generation ETF  (ARKW) – Get ARK Next Generation Internet ETF Report purchased 18,279 shares of Shopify. That holding was valued at $12.1 million as of Wednesday’s close.

Ark Next Generation bought 66,732 shares of Roku. That was valued at $8.9 million at Wednesday’s close. Ark Next Generation purchased 84,911 shares of Sea, valued at $10 million as of Wednesday’s close.

On the selling side, Ark Next Generation dumped 113,116 shares of Disney. The shares were valued at $16.5 million as of Wednesday’s close.

Last month, Ark offered commentary on Roku. “The company reported fourth-quarter earnings with lower-than-expected 33% revenue growth and guidance for further deceleration to 25% for the first quarter,” Ark said.

“Management cited supply chain bottlenecks and inventory shortages at its TV original-equipment-manufacturer partners that have impacted sales of smart TVs.”

On the plus side: “Management noted that active accounts increased to more than 60 million, surpassing the number of video subscribers combined at all the cable companies in the U.S.,” Ark said.

“Although U.S. consumers spend 45% of their viewing hours on streaming TV today, advertising on streaming TV accounts for only 18% of total TV advertising budgets, a gap we expect to close. Roku is the leading TV operating system in the U.S. and is beginning to scale internationally.”

Ark also commented last month on Sea. It noted that India banned Garena Free Fire, Sea’s Battle Royale mobile game. “Despite the ban, … according to Sensor Tower, Sea’s e-commerce app Shopee was No. 2, and Garena Free Fire MAX, the high-end version of the game, was No. 3 in overall Google Play  (GOOGL) – Get Alphabet Inc. Class A Report store rankings on Feb. 18,” Ark said.

“While regulatory uncertainty shrouds Sea’s growth potential in India, we believe the company could continue to take share in Southeast Asia and expand across Latin America and Europe. Sea Limited provides e-commerce, digital entertainment, and fintech platforms across emerging markets.” 

Leave a Reply

Your email address will not be published.