$ARK Innovation ETF (ARKK.US)$ ARK Innovation Investment Fund
ARK Investments $Roku Inc (ROKU.US)$Earnings fell short of expectations, and the day before ROKU announced its earnings report, ROKU was ARKK's third-largest stock (accounting for 6.20% of total investment).
So what did ARKK do in the last week?
Significantly increase RBLX, TXG holdings, and clear positions $Iridium Communications (IRDM.US)$.
Regarding the changes in the positions of ARK Fund's 6 active ETFs in the past week, please follow the 3 articles I posted two days ago:
“Follow Zhuang's Algorithm Part 1 - Active ETF Dealer Operation - 0218”
I have to say that from ARKK's perspective, it is unexpected that Roku's financial report falls short of expectations.
ARKK increased its ROKU holdings during at least the 1.14-2.13 period.
But I don't think this indicates that ARK's valuation team made a serious mistake.
The essential reason, in my opinion, is a change in market style due to market interest rate hikes: a shift in investment style from growth stocks to value stocks. ROKU's growth fell short of expectations, and the market panicked; because growth assumptions changed. Once the ascent of growth is reduced, the discounted value of forward growth will be greatly reduced.
As the market style changes, I'm also thinking about whether I should still track ARK's position changes.
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