- Cathie Wood’s flagship ETF has taken profits on a big chunk of its holdings in Roku as the stock has notched impressive gains, according to a Bloomberg report.
- Roku has had a remarkable year amid the pandemic, climbing from $150 in July 2020 to more than $450 today.
- Wood has heavily promoted her Roku holdings, arguing the company is well-positioned even coming out of the pandemic.
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The actively managed ARK Innovation ETF has sold off 520,000 shares in Roku since the end of June – including around 47,000 shares on Wednesday alone – worth around $243 million at Wednesday prices.
Roku has had a remarkable year amid the pandemic, climbing from $150 in July 2020 to over $450 today. More recently, the stock has sagged a bit over the past six months but is now near all-time highs.
Wood has heavily promoted her Roku holdings, arguing the company is well-positioned even coming out of the pandemic.
“Roku is a very important name to us,” Wood told CNBC earlier in July. “What we believe is the coronavirus crisis changed the world dramatically and permanently, and when consumers and businesses find faster, cheaper, better, more productive, more creative – they’re not going back to the old world.”
Some analysts saw the hefty sale as part of Wood’s strategy of gradually cashing in gains on winners.
“Roku has been the biggest contributor to ARKK’s returns this year so it would be consistent with her strategy to lock in some of those gains and buy into stocks she likes but have struggled,” Bloomberg Intelligence ETF analyst Eric Balchunas told Bloomberg.
Roku was trading at $451.57 as of 2:15 p.m. ET, down 3.6% on the day.