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Cathie Wood's Ark Bought Key Tech Ahead of Earnings: Report

Wood's Ark Investment bought Robinhood, Amazon and more as they prepared to report results this week.
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Star money manager Cathie Wood’s Ark Investment Management bought shares of several technology-related icons  Monday ahead of their earnings reports, according to a published report.

The purchases included Amazon  (AMZN) - Get Amazon.com, Inc. Report, Twitter  (TWTR) - Get Twitter, Inc. Report, Robinhood  (HOOD) - Get Robinhood Report and Spotify  (SPOT) - Get Spotify Technology SA Report, CNBC reported.

All four are reporting this week. 

Ark Fintech Innovation ETF  (ARKF) - Get ARK Fintech Innovation ETF Report snapped up 210,569 shares of securities brokerage app Robinhood, CNBC reported. That stake was worth $8.2 million at Monday’s close.

ARK Fintech Innovation ETF also acquired 2,085 shares of retail/technology colossus Amazon, according to CNBC. That holding was worth $6.9 million at Monday’s close.

Ark’s main fund, the Ark Innovation ETF  (ARKK) - Get ARK Innovation ETF Report, picked up 103,155 shares of social media powerhouse Twitter, according to CNBC. That position was worth $6.4 million at Monday’s close.

The Ark Next Generation Internet ETF  (ARKW) - Get ARK Next Generation Internet ETF Report took in 22,021 shares of music streaming company Spotify. That holding was worth $5.7 million at Monday’s close.

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Robinhood shares fell in after-hours trading Tuesday after the company's quarterly revenue came up short. 

Twitter edged higher in after-hours trading on indications it hadn't been hurt as much as other social media companies by changes in Apple's privacy policies earlier this year.

Spotify is slated to report Wednesday and Amazon on Thursday.

Morningstar analyst Dan Romanoff puts fair value for Amazon at $4,200 and assigns it a wide moat.

Second-quarter earnings slightly trailed expectations, he wrote in July. But, “we see no cracks in the long-term story, as Amazon remains well positioned to prosper from the secular shift toward e-commerce and the public cloud over the next decade,” Romanoff said.

“We note revenue weakness was limited to Amazon’s own online store segment, with other segments performing well and overall profitability impressive despite lower revenue.” So he saw shares as “undervalued.”

On Monday, TheStreet.com’s Apple Maven Daniel Martins discussed Ark’s recent sale of Apple shares.