Cathie Wood Dumps Roku Stock, Goes All-In on Biotech Bets - Here’s Why It Matters

Cathie Wood's ARK just made a massive pivot—dumping Roku positions while doubling down on biotech disruptors. The move signals a fundamental shift in her innovation thesis.

Roku gets the axe

Wood's funds slashed Roku exposure dramatically—catching many off guard. The streaming play once dominated her portfolios, but now gets sidelined for more explosive potential.

Biotech bets multiply

Gene editing, precision therapy, and AI-driven drug discovery stocks soak up the capital. Wood's betting that healthcare disruption will outpace streaming's growth—and she's putting serious money behind that conviction.

Wall Street shrugs—again

Traditional analysts question the timing—as they often do with her moves. But then again, these are the same folks who thought blockchain was just for crypto bros and AI was science fiction. Sometimes being early looks like being wrong—until it doesn't.

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Yesterday, the ARK Innovation ETF (ARKK) sold 80,186 shares of Roku, valued at $7.12 million. Wood also continued trimming her stake in Genius Sports (GENI), selling 398,448 shares through the ARK Next Generation Internet ETF (ARKW), for a total of about $5 million.

Another notable trade of the day was the addition of 119,163 shares of PagerDuty (PD), worth about $1.91 million. PagerDuty is a cloud-based incident management platform. Wood appears to be buying the dip in PagerDuty stock, as shares have been trending lower recently. On the previous day as well, ARK funds purchased PagerDuty shares worth $3.3 million, followed by another $2.2 million on August 18.

Wood Continues to Accumulate Biotech Stocks

On August 20, the ARKK ETF and the ARK Genomic Revolution ETF (ARKG) acquired a combined 158,190 shares of Intellia Therapeutics, valued at $1.63 million. Additionally, the two ETFs bought a total of 14,280 shares in CRISPR Therapeutics. The ARK funds also purchased $1.44 million worth of shares in 10X Genomics (TXG), along with a smaller stake in Twist Bioscience.

Here’s how these stocks perform on TipRanks’ Stock Comparison Tool:

Wood Offloads Roku Stock

The sale of Roku comes as a surprise, since Wood had been accumulating ROKU stock earlier this year. Notably, Roku is the second-largest holding in the ARKK fund, with a market value of $579.3 million and a portfolio weight of 7.42%.

Interestingly, the streaming company also holds the #2 spot across ARK’s combined portfolio, with a market value of $764.2 million and a 5.53% weighting. So far this year, ROKU stock has gained 19%.

On TipRanks, ROKU stock has a Moderate Buy consensus rating based on 15 Buys, seven Holds, and one Sell rating. The average Roku price target of $104.05 implies 17.6% upside potential from current levels.