Roku (ROKU) - Get Roku Inc. Report was falling Wednesday after Cathie Wood's ARK Innovation ETF (ARKK) - Get ARK Innovation ETF Report sold more than 70,000 shares of the streaming platform following Netflix's (NFLX) - Get Netflix Inc. Report disappointing subscriber results.
Shares of Roku were down 3.56% to $342.20 in premarket trading.
Netflix shares fell after the streaming giant beat Wall Street's first-quarter earnings expectations Tuesday but fell short on subscription growth.
Netflix only added 3.98 million net paid subscribers in the first quarter vs. its own previous guidance for 6 million additions and consensus estimates for 6.34 million adds. Netflix's guidance for the second quarter was for just 1 million net paid additions vs. analysts' estimates of 4.21 million.
The company said it anticipates that paid membership growth will reaccelerate in the second half of 2021.
"We believe paid membership growth slowed due to the big COVID-19 pull forward in 2020 and a lighter content slate in the first half of this year, due to COVID-19 production delays," the company said in letter to shareholders.
ARK Innovation ETF, meanwhile, sold 73,767 shares of video streaming platform Roku following Netflix's report.
Netflix and other so-called stay-at home stocks had seen business increase dramatically during the COVID-19 pandemic as consumers and businesses severely reduced traveling and stayed indoors to avoid the potentially deadly disease.
Several of the companies were losing ground Wednesday, including FuboTV (FUBO) - Get fuboTV Inc. Report, which was down nearly 3%, Peloton Interactive (PTON) - Get Peloton Interactive Inc. Report, down 1.36%, Zoom Video Communication (ZM) - Get Zoom Video Communications Inc. Report, down 1.5%, and Cloudflare (NET) - Get Cloudflare Inc. Class A Report, down 1.23%.
In February, Roku reported a surprise fourth-quarter profit and surpassed 51 million active accounts.