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The Street
The Street
Business
Ian Krietzberg

Cathie Wood drops six million into little-known tech stock

On Aug 21, Ark Invest nearly doubled its holding in Adyen (ADYYF) -), a European competitor to Stripe and PayPal. Ark's Next Generation Internet ETF snapped up 733,462 shares of the company, worth around $6.3 million. 

This latest purchase brings the ETF's holding in Adyen up to 1.7 million shares, valued at just under $15 million. The holding is weighted at just 1.13% of the fund, which is dominated by massive holdings in both Roku and Coinbase. 

DON'T MISS: Cathie Wood just bought 6 million shares of this one-dollar stock

Adyen is a Dutch company that operates an online platform that allows merchants to accept payments internationally and across a wide series of potential applications. The company is a prominent name in the fintech world, working with such big names as Netflix, Meta and Spotify; it was recently named on of the top 200 global fintech companies by CNBC and Statista

Last week, the payment processing firm reported less-than stellar results for the first half of the year, noting a 21% increase in revenue at $739.1 million euros ($804.3 million) that nonetheless fell far short of analyst expectations of 853.6 million euros and a 40% growth in revenue. 

The report represented one of Adyen's slowest sales growths on record. 

More on Ark Invest:

The company's shares plummeted following the report, tanking nearly 40% Aug. 17. The stock, which tagged a 52-week high of $18.69 per share as recently as July 31, closed Monday at $8.71 per share, falling more than 2% shortly after market open Tuesday. 

“With higher inflation, leading to higher interest rates, there has been a bit of a shift of focus — less focus on growth, more focus on bottom line,” Adyen’s chief financial officer, Ethan Tandowsky, told CNBC. “The efficiency of which we can develop new functionality, functionality that outperforms our peers will lead us to gaining the market share that we expect.”

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