Cathie Wood sinks $3 million into online education stock 2U
This stock is down more than 50% for the year. But Ark Invest has decided it's time to get in.
Ark Invest picked up a total of more than a million shares of online education platform 2U Aug. 9. The purchase was split across three of Ark's ETFs, with the bulk of the acquisition coming from Ark Innovation, which picked up more than 800,000 shares of the company.
Ark Next Generation Internet picked up a little shy of 150,000 shares of the company, and Ark Autonomous Tech and Robotics bought 110,568 shares.
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This is not the first time Ark has bought into 2U (TWOU) - Get Free Report, but the firm's holding in the company remains one of its smallest holdings across all three funds. Ark Innovation now owns a total of 6.7 million shares of 2U, valued at a little over $20 million and weighted at .26% of the fund.
Next Generation Internet now owns just 1.2 million shares of the company, and Ark Autonomous Tech and Robotics owns just 722,608 shares.
2U's stock has been steadily declining over the past few years. In September 2018, it was trading at close to $90 per share. By February 2021, it peaked at $55. It has continued to trend down, recording a 52-week high of just $13.15. But the stock took a further tumble Wednesday, falling 24% in the wake of a weak earnings report.
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2U's revenue fell 8% from last year to $222.1 million, granting an adjusted net loss of 18 cents per share. The loss came in above analyst expectations, which were pegged at a loss of seven cents per share with revenue of $234 million.
"Our results in the second quarter reflect a shift in timing of planned second-quarter revenue to later in the year," 2U CFO Paul Lalljie said. "Based on the strength of our platform strategy and robust pipeline, we are affirming our revenue guidance while increasing our adjusted EBITDA outlook."
The company affirmed its revenue outlook for the year of at most $995 million. But 2U also said that it expects a net loss of $220 to $225 million for the full-year 2023.
2U's stock closed at $3.05 Aug. 9. It is down 51.36% for the year.
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