The current average Street price target above $136 implies significant upside from here, but that number was over $320 last year before falling almost as fast as the stock has.
After peaking at over $387, the stock closed at just $82.65 on Thursday, and it hit a multi-year low of $78.50 during the day before rebounding with the overall market. Since early 2021, Spotify has seen its shares plunge, like many Ark Invest names. Spotify Revenue Estimates (Seeking Alpha) As the graphic below shows, analysts are projecting a bright future for the company's top line. However, Q2 did show a much larger loss than the prior year period, and recent reports suggest that layoffs are occurring. Through the first six months of the current fiscal year, the company has shown solid revenue growth, with net income being just above the flat line. Like many Ark holdings, Spotify was a name that had been growing revenues nicely in recent years but was losing money. In theory, ARKW could completely exit its position any day now, although there haven't been any sales of Spotify in the last week. When you combine the two ETFs, Ark Invest's holding is less than 3.7% of what it was at the end of Q1. ARKW still holds almost 143,000 shares, but that's down nearly 80% from the end of March level. Wednesday marked a milestone day for the Spotify holding, as ARKK sold the last 300 shares it held of this once nearly 3.2 million share position. While some of these decreases were due to fund redemptions, the majority of them were due to allocation sales, which were seen in Ark Invest's daily trade e-mails. In the chart below, you can see how end-of-month holdings have come down considerably since. The weight in ARKW was almost 4.5%, and these two holdings collectively totaled almost $590 million. At the end of March, these two funds held more than 3.9 million shares of the company, which was more than 2% of the total number of outstanding shares, making Ark Invest one of the largest institutional holders.Īt the end of March, the flagship ARKK Innovation ETF had just under 4% of its fund in Spotify. The stock was a top 10 holding in both the flagship Ark Innovation ETF (ARKK) and the Ark Next Generation Internet ETF (ARKW).
(SPOT), which I'd like to look at today.Įarlier this year, Spotify was one of the more meaningful positions in the Ark complex. One example of that process has been streaming music service Spotify Technology S.A. As those massive gains have shifted to large losses, some of these ETFs have consolidated their positions throughout this year. Founder Cathie Wood and her team saw their funds under management grow massively after the pandemic, as many of her holdings surged in value. Most sales were allocation-based and not from redemptions.Īs my readers know, I have followed exchange-traded fund ("ETF") firm Ark Invest quite extensively over the past couple of years. Flagship ARKK fund has fully liquidated position.ĪRKW ETF position down 80% since end of March.
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