Cathie Wood Just Bought Netflix Stock. Should You Follow Her?
Wood's Ark Invest is building back its exposure to Netflix.
Ark Invest, the investment company founded by Cathie Wood, recently increased its stake in Netflix after the streaming giant reported a disappointing third-quarter earnings. Wood's ARK Next Generation Internet ETF bought 18,783 shares of Netflix, valued at around $1.2 million, following the company's weak engagement and slowing growth.
This move comes after Ark first invested in Netflix in 2016 and sold its position in 2022, but decided to reopen its position in October last year, attracted by Netflix's launch of an advertising tier and its push into live entertainment. Despite Netflix's struggles with weak engagement, slowing growth, and a loss of viewing share to competitors, Wood's investment suggests a long-term confidence in the company's potential to recover.
However, the stock's recent decline and Netflix's challenges in advertising revenue and data transparency may lead to short-term volatility.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
