Cathie Wood pulls $14 million out of Roku after strong Q3 earnings
Shares in this tech giant skyrocketed around 30% after it posted strong third-quarter results.
Streaming giant Roku ROKU set a few personal records when it posted its third-quarter results at the beginning of November.
The company reported an all-time high of 75.8 million active accounts, a 16% net increase compared with the year-ago period. This came in above analyst expectations of 75.3 million active accounts for the quarter.
Roku additionally posted revenue of $912 million for the quarter, a 20% increase compared to the year-ago period and well above analyst expectations of $855 million.
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The stock jumped around 30% immediately following the Nov. 1 report; Roku shares closed the Monday session at $83.30, a slight dip from the peak of $84.75 it hit Nov. 3.
Still, the report was not a total home run. Average revenue per user declined by roughly 7% year-over-year, although streaming hours increased by a healthy margin, surpassing 100 billion hours on a trailing 12-month basis for the first time.
The company's net losses, however, nearly tripled in the third quarter to $330.1 million, or $2.33 per share, compared to the $122.2 million it lost in the year-ago period.
In a letter to shareholders, Roku CEO Anthony Wood highlighted a "solid rebound" in video ads for the quarter, but noted ongoing caution around an "uncertain macro environment and an uneven ad market recovery."
Wood said that Roku expects to see net revenue of roughly $955 million for the fourth quarter, with total gross profits of $405 million.
In the wake of these strong results, forecast and stock performance, Ark Invest pared back its Roku holding by roughly $14.2 million.
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Ark's flagship Innovation ETF sold 171,268 shares of Roku Nov. 6, bringing the fund's holding down to 7.9 million shares, worth slightly less than $660 million.
Ark Innovation's Roku holding recently became the fund's largest holding, supplanting its Tesla TSLA holding, which held the top spot in the portfolio for months. The fund's Roku holding is weighted at 9.4% of the ETF, followed closely by a large stake in Coinbase and a falling stake in Tesla.
Ark CEO Cathie Wood said last week that when Tesla's stock is performing strong relative to the fund's other holdings, Ark will sell some Tesla shares and "redeploy into stocks that have either been hit by some very short-term concern or have underperformed significantly relative to Tesla."
Shares of Roku are up more than 100% for the year.
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