- Cathie Wood bought the dip in Netflix on Wednesday as disappointing first quarter earrings weighed on the company’s stock.
- Wood’s Ark Next Generation Internet ETF and Space ETF added shares of Netflix.
- Netflix tumbled 8.3% Wednesday after adding fewer subscribers than expected in the first quarter.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Cathie Wood bought the dip in Netflix on Wednesday as disappointing first quarter earrings erased $20 billion from the streaming giant’s market capitalization.
Wood’s Ark Next Generation Internet ETF purchased 53,667 shares of Netflix, bringing the fund’s total holdings of the streaming giant to over $92 million as of Thursday morning.
Wood also added 5,214 shares of Netflix to the Ark Space Exploration and Innovation ETF. The space-focused exchange-traded fund now owns 24,480 shares of Netflix worth over $12 million. The streaming giant has a 1.8% weight in the fund.
On Wednesday Netflix tumbled 8.3% to as low as $503 a share after the company added fewer subscribers than expected last quarter, and warned of further weakness. Shares of the streaming giant continued to slide Thursday, falling 1.6% to as $500.55.
In the first quarter of 2021, Netflix added fewer than 4 million subscribers – less than half the 8.5 million it signed up in the preceding quarter, and a quarter of the almost 16 million it attracted in the first quarter of 2020.
Despite lackluster subscriber growth, Netflix grew revenue by 24% year-on-year to $7.2 billion last quarter, and scored a 140% increase in net income to $1.7 billion.
Netflix is down roughly 7% year-to-date.