(Bloomberg) -- Cathie Wood’s exchange-traded funds sold 3.9 million shares in Zillow Group Inc. on Wednesday as the stock’s rout deepened -- a day after buying 288,813 of the securities.
Most Read from Bloomberg
Supply Chain Crisis Risks Taking the Global Economy Down With It
China’s Climate Goals Hinge on a $440 Billion Nuclear Buildout
Atlanta’s Crowded Election Pits Former Mayor Versus ‘Anyone But’
Results on Key Ballot Initiatives, From Policing to the Environment
Into the Metaverse: Where Crypto, Gaming and Capitalism Collide
The stake offloaded was about $255 million, assuming Wednesday’s closing price. That’s about 10 times the value of the shares purchased on Tuesday, when Seattle-based Zillow pulled the plug on its tech-powered home-flipping operation.
Zillow’s stock has suffered as investors question its strategic goal of shifting from a company known for real estate listings to one that gets a bigger piece of the lucrative business around property transactions.
Ark’s daily trading updates provided figures for the portfolio changes without specifying buying and selling prices. They only show active decisions by the management team and don’t include creation or redemption activity caused by investor flows. For that reason, the firm’s exact trading activity may vary.
Following their sales on Wednesday, Zillow makes up less than 1% of each of the ARK Innovation ETF, ARK Next Generation Internet ETF and ARK Fintech Innovation ETF. Tuesday’s update showed the flagship ARK Innovation ETF buying 288,813 shares.
Wood is well known for buying the dip in her high-conviction bets. She and her firm frequently emphasize they have at least a five-year investment horizon, and acknowledge that the disruptive companies they target are often volatile.
Most Read from Bloomberg Businessweek
Papa John Is Still Obsessed With Papa John’s
The Amazon Is Fast Approaching a Point of No Return
Big Teacher Is Watching: How AI Spyware Took Over Schools
The Slip-and-Fall King Wants to Save You From Your Next Wipeout
Australia Braces for Life After Covid Zero
©2021 Bloomberg L.P.
