Cathie Wood's Ark loads up on Twitter after stock hit year-low

ETF Hub wrote a column · Dec 2, 2021 09:39

Cathie Wood amped up buying of $Twitter (Delisted) (TWTR.US)$after the stock slumped to its lowest in a year amid founder Jack Dorsey's move to step down as chief executive officer.

Ark Investment Management, which is already one of the largest shareholders of the social-media platform, bought about 1.1 million shares in Twitter on Tuesday through $ARK Innovation ETF (ARKK.US)$, $ARK Fintech Innovation ETF (ARKF.US)$, and $ARK Next Generation Internet ETF (ARKW.US)$.

According to the asset manager's daily trading updates, the total buying was worth close to $49 million at Tuesday's closing price of Twitter. It was biggest one-day purchase of the stock since July 23.

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Source: Ark Invest

Shares of Twitter were down 4% on Tuesday and later dropped 2.5% to $42.82 in the regular trading sessions on Wednesday.

Cathie Wood's Ark loads up on Twitter after stock hit year-low

Wood's move to increase exposure to Twitter comes one day after Dorsey he will hand over the control of the microblogging site he founded and helped build into a global communications platform to Chief Technology Officer Parag Agrawal.

Dorsey's departure could spark interest in Twitter, which could be "interesting bolt-on acquisition" for a traditional media firm wanting to enter the social media space.
--- Peter Garnry, head of equity strategy at Saxo Bank

Wood and her firm frequently say that they have at least a five-year investment horizon, and acknowledge that the disruptive companies they target are often volatile.

Watch more from Bloomberg: Twitter Inc. has named Parag Agrawal Chief Executive Officer with co-founder Jack Dorsey stepping down as CEO effective immediately. Bloomberg's Naomi Nix and Bloomberg Intelligence s Mandeep Singh have the details on Quicktake Stock.

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Would you invest in Twitter after CTO Parag Agrawal replace Jack Dorsey as CEO?

Source: Bloomberg, Ark Invest

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