- Roku (NASDAQ:ROKU) plunged in Tuesday trading alongside other internet and social media stocks
- Cathie Wood took that as an opportunity to add ROKU stock to her exchange-traded funds
- Roku is one of her largest positions
Roku (NASDAQ:ROKU) stock tumbled nearly 14% yesterday. As the shares were sinking, an exchange-traded fund that renowned — and controversial — investor Cathie Wood controls was buying hundreds of thousands of shares on the dip.
Specifically, Wood’s flagship ARK Innovation ETF (NYSEARCA:ARKK) purchased nearly 232,000 shares of ROKU stock yesterday. Roku is now the third-largest holding of the ETF, which Wood operates through Ark Invest. As of this morning, the company’s ARKK ETF held a position in ROKU worth more than $595 million. That position accounts for 7.75% of the ETF’s total holdings.
Snap Earnings Drag ROKU Stock Down
ROKU stock plunged yesterday in sympathy with Snap (NYSE:SNAP). Like the latter company, Roku gets most of its revenue from advertising. Snap, however, owns a popular social media website, Snapchat, while Roku controls a widely used streaming TV operating system which is also known as Roku.
After the market closed May 23, Snap warned that its second-quarter sales and EBITDA would probably come in below the guidance that it had provided in April. The company explained that, “the macroeconomic environment has deteriorated further and faster than anticipated.”
In early trading today, ROKU stock climbed 3.7% and SNAP stock rebounded 11%.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.