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Cathie Wood's ARK Invest loaded up on 1 million Twitter shares after Jack Dorsey stepped down as CEO

Camomile Shumba   

Cathie Wood's ARK Invest loaded up on 1 million Twitter shares after Jack Dorsey stepped down as CEO
Stock Market1 min read
  • Three of Cathie Wood's ARK funds bought 1.1 million Twitter shares worth almost $49 million on Tuesday.
  • The social media company's stock fell to its lowest in more than a year after CEO Jack Dorsey resigned.
  • It was ARK's biggest one-day Twitter purchase since July, and follows a big dive into the stock in September.

Cathie Wood's Ark Invest snapped up nearly $49 million worth of Twitter shares on Tuesday, taking advantage of a slide in the stock after CEO Jack Dorsey said he would step down as CEO.

Three of ARK's funds — ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), ARK Fintech Innovation ETF (ARKF) — bought a collective 1.11 million Twitter shares, according to a trade notification update.

The social media company's stock fell 4% Tuesday to close at $43.94, its lowest level in more than a year. The shares are up about 1.4% at $44.56 in premarket trading Wednesday.

The stock took a hit after Twitter confirmed Monday that co-founder Dorsey had resigned, to be replaced immediately as boss by its chief technology officer, Parag Agrawal.

The company had come under pressure from activist investor Elliott Management to oust Dorsey, who also served as CEO for digital payments provider Square.

Twitter has lagged the likes of Facebook as it struggled to add users and turn a profit. But it has shown more promising signs recently, with the launch of its Twitter Blue $3 subscription service and increased revenue growth.

Wood, known for her savvy tech picks, already has significant holdings of Twitter in ARK funds. Her last big dive into the stock was in late September, when ARK bought 829,907 shares — worth around $55 million at the time — after Twitter said it would let its US and El Salvador users tip fellow tweeters with bitcoin.

Tuesday's purchase was ARK's largest one-day purchase of Twitter stock since July 23, according to Bloomberg.

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