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Cathie Wood's Ark Buys Slide Again: DraftKings, Block, Roblox

Ark Investment bought 1,185,460 shares of DraftKings Tuesday, and more than 300,000 shares each of Block and Roblox.
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Market darling Cathie Wood’s Ark Investment Management bought shares of DraftKings  (DKNG) - Get DraftKings Inc Class A Report, Block  (SQ) - Get Block Inc Class A Report and Roblox  (RBLX) - Get Roblox Corp. Class A Report Tuesday, continuing her strategy of purchasing into weakness.

Exchange-traded fund manager Ark grabbed 1,185,460 shares of online sports betting company DraftKings in its Ark Innovation ETF  (ARKK) - Get ARK Innovation ETF Report, CNBC reports.

That kitty was worth $31.6 million at Tuesday’s close, following a 4% drop in the share price. The position was recently worth $28.9 million, with DraftKings down 9% Wednesday to $24.33.

Ark purchased more than 300,000 shares of financial services company Block Tuesday, which was worth $47.6 million at Tuesday’s close, with the stock down 5%. The kitty was worth $43.8 million recently, with shares down 8% Wednesday to $144.01.

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ARK Innovation snatched 332,950 shares of video game platform Roblox Tuesday. That was worth $31.6 million on Tuesday’s close, after a 3.7% decline by the stock. The position was recently worth $29.5 million Wednesday, with Roblox trading at $88.46, down 7%.

On both Tuesday and Monday, Ark Innovation bought stakes in 3D-printing company Stratasys  (SSYS) - Get Stratasys Ltd. Report, education technology company 2U  (TWOU) - Get 2U, Inc. Report, medical genetics company Invitae  (NVTA) - Get Invitae Corp. Report and digital cell biology company Berkeley Lights  (BLI) .

The Ark Innovation ETF has struggled over the past 12 months, losing 33%. But it is still up 72% for the last two years.

Last month, Wood said her stocks are in “deep value territory,” not in a bubble, and should generate hefty returns over the next five years.

“After correcting for nearly 11 months, innovation stocks seem to have entered deep value territory, their valuations a fraction of peak levels,” she wrote in a blog.