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Skillz Jumps as Cathie Wood's ARK Investment Buys Shares

Two ARK active ETFs purchased over 5 million shares of Skillz on Wednesday afternoon.
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Shares of mobile gaming company Skillz Inc.  (SKLZ) - Get Skillz Inc. Class A Report continued to rise Thursday after Cathie Wood's ARK Investment Management bought shares of the e-sports platform. 

On Wednesday afternoon, ARK's active ETFs added over 5 million shares of the company, with ARK Innovation ETF  (ARKK) - Get ARK Innovation ETF Report buying more than 4 million shares and ARK Next Generation Internet ETF  (ARKW) - Get ARK Next Generation Internet ETF Report purchasing more than 1 million shares. 

At Wednesday's closing price, the total value of the purchase is about $85 million. Skillz shares closed Wednesday's session up 33.6%. 

The stock was up another 14.9% to $19.26 per share in morning trading Thursday. Year-to-date, however, the stock has dropped more than 16%.

Last month, Skillz announced the pricing of a public offering of 32 million shares. The company will sell 17 million shares of Class A common stock while certain stockholders will sell another 15 million shares at a price of $24 per share. 

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The company will use proceeds from the offering for working capital and general corporate purposes. 

In addition to the purchase of Skillz, ARK also bought 2.74 million shares of software robotics company UiPath Inc.  (PATH) - Get UiPath Inc. Class A Report following the company's successful IPO on Wednesday.

UiPath surged in its market debut Wednesday, finishing up 23.6% to $69.22 after opening 18% above its initial public offering price of $56. At Wednesday's closing price, the value of the ARK purchase was $189.7 million.

UiPath shares were rising 4.5% to $72.11 in early trading Thursday. 

The company said that it planned to raise $1.3 billion in the IPO on the New York Stock Exchange with its offering of 23.9 million shares at $56 each.