Ark Invest, through its Next Generation Internet ETF (ARKW) -), Wednesday bought 798,678 shares of Nextdoor Holdings, a purchase valued at roughly $1.4 million.
Ark's holding in the San Francisco-based social-media company focused on neighborhoods (KIND) -) is now valued at around $18 million. The stake is made up of 10.1 million shares and is weighted at 1.08% of the fund.
The Next Generation Internet fund is led by holdings in Coinbase, Roku and Block, which collectively are weighted at 27% of the portfolio.
Related: Cathie Wood explains why she cut Ark's Tesla holding
Shares of Nextdoor rose more than 4% Wednesday, to close at $1.80 per share. At last check the stock was up 2.2% at $1.84. The stock's 52-week high of $3.41 per share was touched toward the end of June. it traded around $10 in early 2021.
The average analyst price target for Nextdoor is $2.44, with a high of $3.50 and a consensus hold rating, according to TipRanks.
In its third-quarter results, Nextdoor last month posted $56 million of revenue, a 6% year-over-year increase, alongside a $38 million net loss. The company reported a net loss of $35 million in the year-earlier period.
For the quarter Nextdoor reported a 6% year-over-year increase in weekly active users to 40.4 million.
The company additionally outlined a cost-reduction plan, led by a 25% staff cut and targeting a reduction in personnel expenses of around $60 million annually.
"For the rest of 2023 and beyond, we remain focused on attracting new Neighbors to the platform, providing the relevant local content to drive engagement, and ensuring value for our advertisers — while building a sustainable business that delivers long-term value for our shareholders," Chief Executive Sarah Friar said in a statement.
Related: Cathie Wood snaps up 300,000 shares of a stock Jim Cramer said to 'sell, sell, sell'
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