Key points:
- In a volatile two weeks for Social media, Twitter is set to announce earnings on Thursday
- Cathie Woods' ARK Investment sells 4 million shares, ammounting to $142M
- Will Twitter follow on the path of Facebook or Snap? Investors will be extra cautious
Following Facebook & Snap, Twitter is set to release its earnings later this week. It’s been a flurry of emotion for social media companies; with extreme volatility being a key feature in last week’s trading. Cathie Wood’s famed ARK Investment Management has made her view abundantly clear regarding the latest social media company to announce earnings; selling nearly 4 million shares in Twitter.
Just days before earnings – ARK amped up selling of Twitter stock – a move that started back in December last year but has slowly been ramping up over the course of the last two months. Monday’s sale of 4 million shares stands as the most shares sold in one day since May, according to Bloomberg trading data. The total value of the shares sold, based on Monday's closing level, amounted to roughly $142M.
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It’s an uncertain landscape for social media companies, with mixed earnings casting a shadow over Twitter. Meta Platforms, the parent of Facebook, suffered its biggest crash in stock-market history last week on news that its user base has stopped growing.
This, in turn, sparked worries over Snap, sparking a sell-off that was quickly recouped with a better-than-expected sales forecast. So, investors will be meticulously picking at Thursday’s earnings for signs of slowing growth, or the opposite – but clearly over at ARK; the former seems to be the consensus.