Ark Invest (Wood) and Pavlo Gonchar/SOPA Images/LightRocket via Getty Images (Zillow)
- Cathie Wood's Ark Invest dumped Zillow stock for a second straight day on Thursday.
- The sales are a turnaround from the firm's buying on Tuesday, when Ark snapped up shares as the price plummeted.
- Wood's ARKK ETF sold 1.8 million Zillow shares on Thursday, following Wednesday's divestment of 3.9 million shares.
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Cathie Wood's Ark Investment Management dumped shares of Zillow for a second consecutive day on Thursday, after snapping up shares of the embattled online real estate firm days earlier on Tuesday.
Wood's Ark Innovation ETF sold 1.8 million Zillow shares on Thursday, according to a daily trading update. The sale amounted to about $121 million based on Zillow's Thursday closing price of $67.28. Thursday's move followed a sale on Wednesday of 3.9 million shares.
Wood's flagship ARK Innovation ETF purchased Zillow shares on Tuesday after the firm announced third-quarter results that missed analyst estimates and included a $304 million writedown related to its housing inventory. The company also said it is officially ending its iBuying business due to volatility in housing markets across the US.
Zillow stock has plunged 32% from the start of the week.
Zillow's instant-buying, or iBuying division, which enabled the company to quickly buy up homes for sale and flip them at a profit, was disrupted by the volatility of the pandemic, when big demographic shifts made it difficult to predict the short term trajectory of house prices.
Its CEO, Rich Barton, admitted that Zillow could not master developing an algorithm and acquisition process that could reliably predict the trajectory of the nation's housing market. He also on Tuesday announced it is laying off 25% of its workforce.
ARKK is lower by about 0.4% as of 10:27 a.m ET on Friday, at $123.88.