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Wood’s ARK Fund sells $29 Million in Tesla stock to buy Roku’s dip

Written by Cláudio Afonso | | LinkedIn | Twitter

According to ARK’s daily transaction reports, the ARK Innovation ETF sold nearly $29 million worth of Tesla shares on Friday — a total of 32,401 shares. The transaction follows a 5.79% run-up in Tesla stock price on Friday and a 9.15% run in the last 5 days after a stronger than expected Earnings Results for the second quarter of 2022.

In the same report, and through many ETFs, Cathie Wood’s fund bought a total of $28,287,146 of Roku shares.

As of July 29, Tesla is Cathie Wood’s ARKK biggest holding with a weight of 9.47% ($906 million) followed by Zoom Communications with 8.68% ($830 million) and Roku with 7.79%, a market value of $745 million.

As of the end of the second quarter, ARKK ETF was down 57.84% year-to-date with a total of net assets of $7.935 billion.

In the same report from Friday, ARKW ETF added 57,876 shares and another 373,857 through ARKK on the streaming stock’s plunge Roku as the shares trade plunged over 23% on Friday’s session.

The company recently reported lower than expected ad revenue and earnings per share in its Q2 financial results showing a slow don in the ad-supported streaming and connected TV ad market. 

Earlier this week, Elon Musk’s brother and Tesla board member Kimbal Musk exercised a call option to buy 25,000 Tesla shares at $74.17 per share on Monday, a Form-4 filing showed. The shares cost Kimbal $1.85 million owning now a total of 536,240 shares and the expiration date for the call option is June 18, 2025. 

In a tweet, Kimbal said, “Tesla is just getting started. I can’t wait for the next decade of awesome from my brother and his amazing team”.

Tesla announced Wednesday its Q2 2022 Earnings Results reporting total revenue of $16.9 billion (up 42% year-over-year) and a 14.6% operating margin saying it expects to achieve “50% average annual growth in vehicle deliveries” confirming the previous guidance.

Tesla also detailed the production in each factory adding that it achieved “record production rates across the company”. However, the company warned of “continuation of manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages and logistics and other complications, which limited our ability to consistently run our factories at full capacity”.

Written by Cláudio Afonso | | LinkedIn | Twitter