Cathie Wood’s ARK Fund Piles Into Twilio Stock As Short Sellers Eye $36
ARK continues it's $TWLO buying spree as it simultaneously dumps Twitter and Coinbase.
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Funds associated with ARK Investment have been dumping shares of $TSLA and $COIN lately and that has continued into this trading week.
The flagship ARK Innovation ETF $ARKK dumped 24,189 shares of $TSLA on Tuesday, while the ARK Next Generation Internet ETF $ARKW, sold 4,470, according to the daily trade disclosures put out by ARK. Those sales were worth $8.4 million based on Tesla’s Tuesday closing price of $293.34.
Tesla makes up 0.77% of the Innovation ETF after the most recent sales, along with 0.80% of the Next Generation Internet ETF.
ARK, which is run by Cathie Wood, also dumped $5.5 million more in Coinbase shares $COIN after shedding $26.3 million million worth of the stock Monday and just over $50 million worth of the stock Friday.
The ARK Fintech Innovation ETF sold 16,565 Coinbase shares, and the stock now represents 0.16% of that fund. The ARK Innovation ETF $ARKK, shed 26,951 shares while the ARK Next Generation Internet ETF parted with 8,708 shares.
ARK funds continued to buy up shares of Twilio Inc. ($TWLO), amounting to $11.4 million in new purchases Tuesday, based on the stock’s closing price, and matching the dollar amount purchased Monday. The Fintech ETF added 18,099 shares, while the Innovation ETF scooped up 146,801 and the Next Generation Internet ETF added 26,620.
Twilio represents about of 0.1% of all the three funds.
Some contrarian and even bullish confirmation possibilities, however exists on $TWLO, and this may play out, with the possibility of a sell off toward the lows of April 2018 and the January 2023 or July 2022.
$TWLO Quarterly Chart
The quarterly chart offer some insights into possible price direction. The first quarter of the year failed to close above Q4 2022 resulting in the selloff in Q2 2023 that did not manage to close below the previous quarter. For the bullish narrative to play out price must stay above the open of this quarter until the end of September 2023. This will increase the probability of a test of $98.67. The opposite would be the case for a bearish narrative and lower test of $36.07.
At this point it would be pertinent to ask the question; What does Twilio actually do and why are Cathie and co interested?
Twilio is a customer engagement platform used by hundreds of thousands of businesses and more than ten million developers worldwide to build unique, personalized experiences for their customers. They are a cloud communications specialist operating in a space that’s set for secular long-term growth. The demand for communications platform-as-a-service (CPaaS) is expected to increase at an annual pace of 28% through 2029, with the market expected to generate annual revenue of $62 billion at the end of the forecast period.
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