What happened
Shares of Twilio (TWLO 1.50%) climbed higher today, up by 5% as of 11:30 a.m. EDT, after widely followed institutional investor Cathie Wood of ARK Invest started to accumulate more shares. The stock took a significant hit during the broad pullback in the tech sector in recent weeks but has started to recover.
So what
ARK has a unique practice of disclosing trades within its actively managed ETFs on a daily basis, and last night's notification shows that two ARK funds scooped up Twilio. ARK Next Generation Internet (ARKW -0.76%) bought 62,702 shares for a portfolio weighting of approximately 0.3%, while the flagship ARK Innovation (ARKK -0.61%) fund acquired over 112,500 shares for a portfolio weighting of around 0.17%. The trading disclosures do not indicate at what prices the transactions occurred, but Twilio shares had a range of $361.01 to $369.97 yesterday.
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ARK Innovation had sold around 93,200 shares back on Feb. 18, the day after the communications technology specialist reported fourth-quarter earnings that sent the stock to all-time highs. ARK Next Generation Internet purchased around 25,600 shares on Jan. 25. Twilio shares hit as low as approximately $311 during the tech rout in recent weeks, and ARK may be positioning itself for a potential rebound in tech stocks.
Now what
Twilio closed its acquisition of Segment during the fourth quarter. The company's guidance calls for revenue of $526 million to $536 million in the first quarter, which should result in an adjusted net loss per share of $0.09 to $0.12.
