Cathie Wood's ARK flagship fund buys Trade Desk for the first time after profit warning

By Barbara Kollmeyer

A rout in shares of The Trade Desk has drawn some buyers from the woodwork, specifically Cathie Wood's flagship ARK Innovation Fund that has dropped money on the ad-technology group for the first time.

The ARKK ARKK fund spent $34 million on 543,000 shares in Trade Desk (TTD), according to a trading update that published on Saturday. That stock tumbled 16% on Friday after a September-quarter earnings report revealed a deeply disappointing outlook. According to FactSet, Trade Desk has only missed its revenue forecast one other time in the past five years.

In the wake of its dismal results, analysts were divided on whether the subsequent stock rout was an opportunity or a red flag over investing in advertising-exposed names for the holiday season.

Trade Desk was also bought by the ARK Next Generation internet exchange-traded fund ARKW -- $4 million for 69,000 shares. That fund has been a regular buyer of the company since June, which marked the first time it bought shares since selling in the latter half of 2021.

The stock is up 42% so far in 2023.

-Barbara Kollmeyer

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11-13-23 0755ET

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