TLDR
- Ark Invest purchased 191,671 Block shares worth about $15.4 million after the stock declined 3%.
- Cathie Wood’s firm added Block shares after buying roughly $21 million worth the previous week.
- Block reported $6.62 billion in Q2 revenue, rising 9% from the same period last year.
- Ark also purchased 189,796 Securitize shares worth about $1.02 million following its recent stock decline.
- Securitize reported $14.4 million in Q2 revenue and a net loss of $21.7 million.
Cathie Wood’s Ark Invest added about $15.4 million in Block shares after the fintech stock fell 3%, extending purchases made following the company’s second-quarter earnings report.
Ark Invest Adds 191,671 Block Shares
Cathie Wood’s Ark Invest purchased 191,671 shares of Block Inc. across two of its exchange-traded funds. The investment firm added the shares through the ARK Innovation ETF and ARK Blockchain & Fintech Innovation ETF.
Block closed around $80.20 after falling about 3.2%, putting the latest purchase at roughly $15.4 million. The transaction added to Ark’s exposure to the Jack Dorsey-led financial technology company.
The purchase followed a larger Block investment by Ark last week. The firm bought about 267,676 shares worth roughly $21 million after Block dropped more than 6% following its second-quarter earnings report.
Block remains one of Ark’s larger fintech investments. The company carries a 6.47% weighting in ARKF, making it the fund’s second-largest holding. Ark generally limits individual positions to 10% of a fund to control portfolio concentration.
Block Q2 Earnings Beat Revenue Estimates
Block reported second-quarter revenue of $6.62 billion, up 9% from a year earlier. Adjusted earnings reached $1.02 per share, representing a 65% increase from the same period last year.
Gross profit also rose 25% to $3.17 billion. However, investors have continued to assess the company’s operating expenses following workforce reductions earlier in the year.
Block cut about 40% of its workforce in February as part of a wider restructuring effort. Concerns about expenses remained after the earnings release despite the company’s growth in revenue and adjusted earnings.
The fintech company also raised its full-year profit forecast to $12.51 billion, which would represent annual growth of about 21%. Despite its recent pullback, Block shares have gained nearly 50% over the past six months.
Cathie Wood Also Buys Securitize After Stock Decline
Ark Invest also increased its position in Securitize during the same trading session. The firm purchased 189,796 shares of the tokenization company after its stock fell 3.9% to $5.39.
The transaction was worth about $1.02 million. Securitize had already dropped around 20% during the previous week after releasing its first quarterly earnings report since becoming a public company.
Securitize reported second-quarter revenue of $14.4 million, down 5% from a year earlier. The figure also came below expectations of about $20.6 million.
The company posted a net loss of $21.7 million, equal to $2.37 per share. Ark’s latest purchase therefore increases its exposure to Securitize after the earnings-driven decline while adding further Block shares following two recent stock pullbacks.
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