Cathie Wood-led Ark Investment Management bought over 1.3 million shares, worth about $72.42 million, in Twitter Inc (NYSE:TWTR) on Friday as the stock slumped after the social media company reported lower-than-expected user growth in the first quarter.
Why Ark Sees Upside To TWTR: Twitter shares closed 15.16% lower at $55.22 on Friday. The stock has a 52-week high of $80.75 and a low of $27.12.
The investment firm bought the shares of the San Francisco-based company via two of its funds; the Ark Innovation ETF (NYSE:ARKK) and the ARK Next Generation Internet ETF (NYSE:ARKW).
Twitter is ARKK’s thirty-fourth largest investment among a total of 58 stocks and ARKW’s eighth largest investment among a total of 53 stocks.
Twitter reported year-over-year revenue growth of 28% to $1.04 billion in the first quarter, lower than peers. The social media company grew its monetizable daily active users (mDAUs) 20% year-over-year to 199 million, just shy of the 200 million expected.
“Given the recent product announcements centered around Twitter Spaces, a live audio feature, we believe that future user growth could surprise to the upside,” Ark said in a note to investors over the weekend.
Other Trades: Ark Investment Management continued to snap up Teladoc Health Inc (NYSE:TDOC), buying a total of 261,041 shares worth about $44.99 million on Friday in the telemedicine company, via the Ark Genomic Revolution ETF (BATS:ARKG), ARKK and the ARKW.
See Also: Cathie Wood Piles Up Teladoc As Shares Slump On Q1 Miss, Also Adds More Tesla
The New York-based investment firm also bought 73,019 shares, via ARKW, of the Chinese e-commerce giant Pinduoduo Inc (NASDAQ:PDD) amid reports of China’s fresh regulatory probes against tech giants.
See Also: Cathie Wood Can’t Get Enough Of These 3 Chinese Alibaba Rivals
Other Ark Buys On Friday:
CM Life Sciences II Inc (NASDAQ:CMIIU) Zymergen Inc (NASDAQ:ZY) 908 Devices (NASDAQ:MASS) Recursion Pharmaceuticals (NASDAQ:RXRX) Ionis Pharmaceuticals Inc (NASDAQ:IONS) Iridium Communications (NASDAQ:IRDM) Jaws Spitfire Acquisition (NYSE:SPFR) Galileo Acquisitions Corp (NYSE:GLEO) 3D Systems Corp (NYSE:DDD) Tencent Holdings Ltd (OTC:TCEHY)
Other Ark Sells On Friday: