Ark Invest Seizes on Block Earnings Drop, Buys $21M Worth of Stock
Block Inc.'s (XYZ) stock took a hit on Thursday after its second-quarter earnings highlighted growing operational cost concerns, but Cathie Wood's Ark Invest saw an opportunity to buy. The company reported $6.62 billion in revenue, a 9% year-over-year increase, and adjusted earnings per share of $1.02, up 65%. However, investment bank Mizuho projects operating costs will climb from $4.48 billion in the first half of 2024 to $4.56 billion in the second half.
Ark Invest took advantage of the 6.15% decline in Block's stock price, purchasing 267,676 shares totaling $21 million across its ARKK, ARKW, and ARKF funds. This acquisition represents a significant stake for Ark, with Block becoming the 10th-largest position in the ARKW ETF, accounting for 3.51% of the fund's portfolio.
The investment firm made several other transactions on Thursday, including selling $16.9 million worth of Shopify shares and acquiring $4.6 million in MercadoLibre shares. Ark also reduced its positions in Roblox and cybersecurity companies Cloudflare and CrowdStrike.