(Photo : Cindy Ord/Getty Image)
"The Bloomberg 50" Celebration In New York City - Inside
NEW YORK, NY - DECEMBER 10: Cathie Wood (R) and guest attend "The Bloomberg 50" Celebration at Cipriani 25 Broadway on December 10, 2018 in New York City.
Days before Twitter Inc.'s earnings, Cathie Wood increased her selling of the social media platform's stock.
According to Bloomberg statistics gathered by ARK Investment Management LLC, Wood's business sold roughly $4 million Twitter shares on Monday, the largest in one day since at least May.
The social media business is expected to release its financial results on Thursday. According to the asset manager's daily trading announcements, Wood's flagship ARK Innovation ETF sold 3.66 million shares of Twitter on Monday, while the ARK Next Generation Internet ETF sold more than $280,000 shares. Based on Monday's closing level, that equated to nearly $142 million.
Cathie Wood Sells More Twitter Share Stock
Despite a varied set of results from its social-media rivals, the company has decided to sell. Last week, Meta Platforms Inc., the parent company of Facebook, had the greatest one-day drop in stock market history as its user count slowed, while Snap Inc. soared to its highest level ever after outperforming Wall Street's quarterly sales forecasts.
Since late December, ARK has been selling Twitter shares practically every week, and this month, the pace has accelerated considerably. In addition to the sale on Monday, ARK sold more than $2 million shares of Twitter on February 3 and 700,000 shares on February 2 on the same day, as per Bloomberg via MSN.
What To Watch Out in Cathie Wood Stock
As a bleak prognosis knocked down the Jack Dorsey-led company's price from competitor PayPal, Cathie Wood's Ark Invest bought up on more than $62 million worth of Block shares on Wednesday. Ark profited from a 10.6% drop in Block and a cryptocurrency Dorsey is pushing to grow beyond digital payments.
In its quarterly financial statement on Wednesday, PayPal, which rebranded from Square in December, issued poor expectations on sales growth and profitability. Block, which rebranded from Square in December, plummeted. The anticipation weighed down Block's stock to perform similarly below forecasts when it reported earnings. However, Ark, which already owned 6.14 million shares in Block, increased its wager on Dorsey and his company's goals.
According to a trading announcement, three Ark funds - the flagship Ark Innovation, Ark Next Generation Internet, and Ark Fintech Innovation - jointly purchased 549,034 shares in Block. At the closing price of $114.04 on Wednesday, the shares were worth nearly $62.6 million.
Meanwhile, the Ark Fintech Innovation Fund sold 158,126 PayPal shares worth about $21 million, a total of nearly $21 million. The business, run by Cathie Wood, also sold 722,327 Twitter shares, valued over $26.5 million at $36.51 per share. After Dorsey stepped down as CEO of Twitter in December to focus on Block and bitcoin, it purchased 1 million shares of the social media business, according to Market Insider.
Wood bought $7 million worth of Coinbase Global when the stock was down about 50% from its all-time high. In part, because it combines security and ease of use, Coinbase is the most popular bitcoin exchange. Although safe, platforms like Gemini and eToro lack the convenience of purchasing and trading Coinbase provides, making it easier to lure newcomers to the market.
The platform at Robinhood Markets, on the other hand, is simple and attractive, but it lacks a sufficient level of consumer protection. Coinbase has both, which is why it has a user base of 73 million people and a market capitalization of more than $25 billion.
The corporation has benefited from its brand's reputation as a market leader. It received considerable uptake of its services during the growth in popularity of crypto in 2021. In the third quarter, the number of monthly transacting customers increased by 252 percent year over year to $7.4 million, which was reflected in the company's top and bottom lines, as well as its cash flows, as per The Motley Fool.
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