Investment star Cathie Wood’s Ark Investment Management continues to buy sagging technology stocks.
On Monday Ark picked up more than 145,000 shares of Singapore-based Sea Ltd. (SE), a digital entertainment/e-commerce/video game/digital financial services business. Ark purchased most of the shares in its Ark Next Generation Internet ETF (ARKW).
The kitty was recently worth about $20.4 million.
Sea stock sank 18% Monday, after India banned one of its premier video games, Free Fire. The stock has dropped 59% over the past three months amid slowing growth of users, video game revenue and e-commerce, Bloomberg reports.
To be sure Sea shares recently traded at $140.60, up 9%.
Ark has snapped up Sea stock since the beginning of the year, diving in almost every day this month, Bloomberg reports.
Sea isn’t the only beaten-down technology-related company that Ark has been acquiring.
Ark’s flagship fund, Ark Innovation ETF (ARKK), has snagged more than $400 million of such stocks in the past two weeks, The Wall Street Journal reports.
The list includes financial services company Block (SQ), online video-game platform Roblox (RBLX) and securities brokerage app Robinhood Markets (HOOD).
Speculative technology stocks have sunk in recent months amid rising bond yields and anticipation that the Federal Reserve will raise interest rates soon.
Many of Wood’s “disruptive” technology companies also are borrowers, so higher rates mean a bigger debt load for them.
Ark Innovation has slid 38% in the last three months. But Wood is unbowed.
“The important thing to keep in mind is the long-term horizon that we invest in,” she told investors last month. “We have a five-year horizon. I’ve never seen innovation on sale like it is today.”
