Ark Invest’s Cathie Wood Increases Netflix Position Amid Mixed Q1 Results
Cathie Wood, CEO of Ark Invest, increased her stake in Netflix (NASDAQ: NFLX) on April 21, 2023, immediately following the company’s disappointing first-quarter financial report. Netflix reported a 16% rise in revenue to $8.2 billion, exceeding its target but only achieved an 83% earnings increase to $5.3 billion, or $1.23 per share. Despite these figures, the company’s future outlook was bleak, with guidance for Q2 estimating a 13.5% revenue growth, the slowest in over a year.
On the trading day Woods made her purchases, Netflix’s stock declined nearly 10%, following news of founder Reed Hastings’ impending departure from the board and a significant $2.8 billion termination fee from Warner Bros. Discovery that inflated earnings. Woods’ decision to buy during the drop contrasts with many investors’ strategies, indicating a contrarian approach.
