What happened
Shares of once high flying Roku (ROKU 0.43%) hit a speed bump as the market rotated out of technology stocks over the past several weeks. The stock is down 23% compared to this time last month, but the tide is turning back today.
Shares of Roku were up 10%, near the highs of the day, as of 3:50 p.m. EST.
So what
One investor who added to Roku on the dip was ARK Investment's Cathie Wood. ARK Innovation ETF (ARKK +2.67%) discloses its daily positions, and the exchange-traded fund added almost 150,000 shares of Roku on Friday during the tech sell-off. Investors who follow Wood's moves are also adding to, or initiating, investments in Roku today.
Image source: Getty Images.
Now what
Roku has made some strategic moves recently to add to its strong growth. In January, the streaming platform said it acquired the exclusive global distribution rights to short-form streaming platform Quibi. Roku will use its free ad-supported Roku Channel to stream over 75 shows and documentaries created for Quibi by Hollywood's leading studios and production companies.
Last week, Roku announced an alliance with ratings and data analytics company Nielsen (NLSN +0.00%) that aims to help Roku expand its programmatic advertising business. Roku acquired Nielsen's advanced video advertising business in the deal.
With the business continuing to grow, and the added nod from Cathie Wood, investors are starting to reverse the downtrend Roku stock has experienced in recent weeks.
