Cathie Wood’s money managing firm Ark Investment Management on Thursday sold more shares in Netflix Inc. just ahead of the streaming video-on-demand company issuing quarterly guidance below estimates and sending its shares down in the after-hours session.
Ark Invest sold 2,958 shares—estimated to be worth $1.5 million based on the latest closing price—in Netflix on Thursday.
Shares of the company closed 1.48 percent lower at $508.25 a share on Thursday. The stock was down 18.1 percent in after-hours trading at $416.38.
The St. Petersburg, Florida-based Ark Invest sold shares in the video streaming company via the Ark Space Exploration & Innovation ETF (ARKX). No other Ark Invest ETF currently owns shares in Netflix.
ARKX held 10,224 shares—worth $5.3 million—in Netflix, prior to Thursday’s trade.
Netflix announced its fourth quarter results in after-hours session and said it expects to add a smaller number of subscribers in the first quarter than it did a year ago.
Netflix said it expects 2022 first-quarter earnings of $2.86 per share, which is well below the estimate of $3.45 per share. The company expects first-quarter revenue of $7.903 billion versus the estimate of $8.08 billion.
Ark Invest had in July trimmed its stake in the video-on-demand company just days after spelling out a bull’s case on the stock. At the time, it said that Netflix would see a “meaningful increment” in revenue if it managed to grab a “fraction” of the highly-competitive video-gaming market.
By Rachit Vats
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