Ark Invest's Katie Wood purchased nearly $21 million worth of Block Inc. (XYZ) shares after the fintech company's stock fell more than 6% on Thursday, August 6th, following the release of its second-quarter results, which exceeded analyst forecasts.
Block's revenue in the second quarter amounted to $6.62 billion, a 9% increase compared to the same period last year. Adjusted earnings per share rose by 65% to $1.02, and gross profit grew by 25% to $3.17 billion. Despite these strong figures, Mizuho analysts are concerned about operating expenses, which may increase from $4.48 billion in the first half to $4.56 billion in the second half. In February, Block laid off about 40% of its employees.
Taking advantage of the decline in the fintech company's shares led by Jack Dorsey, Ark Invest acquired 267,676 Block shares for its exchange-traded funds ARKK, ARKW, and ARKF. As a result, the value of Ark's latest purchase was approximately $21 million.
Block remains a significant asset in Ark's funds. For instance, in ARKW, the company holds the tenth largest position by portfolio weight, valued at about $60 million, with a share of 3.51%. It is worth noting that Katie Wood limits each asset's weight in a fund's portfolio to 10%.
On August 7th, Ark also purchased 20,318 SpaceX shares through ARKK, ARKQ, ARKW, and ARKX for nearly $2.3 million, and sold 39,509 Bullish shares for $910,287 through ARKW.
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