Cathie Wood's Ark Invest bought $15.4 million worth of Block Inc. shares as the stock dipped 3%, adding to a similar purchase made the previous week. The firm also picked up roughly $1.02 million of Securitize shares after that stock's post-earnings slide.
Ark adds to its Block position
Ark Invest bought more shares in Block Inc. on Monday, using the stock's dip to expand its position. The firm added 191,671 shares of the Jack Dorsey-led fintech company, split across the Ark Innovation ETF (ARKK) and the Ark Blockchain & Fintech Innovation ETF (ARKF).
Block's stock fell 3.2% to close at $80.2, putting the value of Ark's Monday purchase at roughly $15.4 million. The buy follows a larger move a week earlier: Ark had purchased around $21 million worth of Block shares after the stock dropped 6% in a single day following its second-quarter results. Revenue beat expectations then, but Mizuho analysts raised concerns about rising operating expenses despite a 40% staff cut in February.
Block has still gained nearly 50% over the past six months. It also recently raised its full-year profit forecast to $12.51 billion, which would mark 21% annual growth. Ark caps any single holding at 10% of a fund's portfolio to preserve diversification across its ETFs, yet Block remains one of its main crypto stock investments and the second-largest holding in ARKF, at a 6.47% weight.
Ark also buys the Securitize dip
Ark made a second purchase on Monday, buying 189,796 shares of Securitize as that stock fell 3.9% to close at $5.39. The purchase totaled roughly $1.02 million.
Securitize had already dropped around 20% the previous week after disappointing second-quarter results, its first earnings report since going public. Revenue came in at $14.4 million, down 5% year-over-year and below the anticipated $20.6 million, while the company posted a net loss of $21.7 million, or $2.37 per share.
Source: The Block
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