Cathie Wood-led Ark Investment Management on Tuesday sharply trimmed its Twitter Inc (NYSE: NYSE:TWTR) stake as the microblogging site faces buyout bids from Tesla Inc (NASDAQ: TSLA) CEO Elon Musk and other private equity firms.
The St. Petersburg, Florida-based money managing firm sold 114,576 shares, estimated to be worth $5.28 million, in the social media company.
Twitter stock closed 4.7% lower at $46.16 a share on Tuesday and is up 8.2% so far this year.
Ark has significantly trimmed its stake in Twitter this year just months after placing huge bets on the microblogging site. A bulk of the exposure was lowered in February when the company reported quarterly earnings.
See Also: Cathie Wood Trims Twitter Stake By $8.7M As Elon Musk Declines Board Seat
The firm currently holds Twitter shares via two of its six actively traded exchange funds — the Ark Next Generation Internet ETF (NYSE: ARKW) and the Ark Fintech Innovation ETF (NYSE: ARKF).
The two ETFs held 1.12 million shares of Twitter, worth $54.6 million, before Tuesday’s trade. The latest sale lowers Ark Invest’s exposure to Twitter by about 10%.
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Apart from Musk’s $43 billion takeover bid, Twitter has also caught the interest of other buyout firms, one of which is considering teaming up with the world's richest man.
The company’s board has put a "poison pill" in place to thwart Musk’s attempt to buy more stake in the company. The billionaire entrepreneur currently owns about 9% of Twitter.
The microblogging site may provide more details during its quarterly earnings report next week.
Here are a few other key Ark Invest trades on Tuesday:
- Bought 782,043 shares, estimated to be worth $3.75 million, in Velo3D Inc (NYSE: VLD). The stock closed 1.2% lower at $4.8 a share on Tuesday.
- Bought 100 shares, estimated to be worth $261,062, in Alphabet (NASDAQ:GOOGL) Inc Class C (NASDAQ: GOOG). The stock closed 2% higher at $2,610.6 on Tuesday.
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