What Happened: Undeterred by the steep sell-off, Cathie Wood’s Ark Invest bulked up on DocuSign, using the weakness as a buying opportunity.
Wood’s ARK Innovation ETF (NYSE:ARKK) picked up 461,662 shares of the company, her ARK Next Generation Internet ETF (NYSE:ARKW) purchased another 178,334 shares and the ARK Fintech Innovation ETF (NYSE:ARKF) bought 106,968 shares.
The total number of DocuSign shares bought by Ark’s actively-managed funds was 746,964, valued at about $31.2 million at Friday’s closing price of $41.77 a share.
Related Link: DocuSign Plummets 40%: A Technical Breakdown
Why It’s Important: Friday’s plunge is attributable to a billings miss by the company and a slew of downgrades and price target revisions by sell-side analysts that followed.
The company’s management talked about a shift in demand as pandemic tailwinds dissipated.
Ark, however, is optimistic. “We believe the transition from paper to digital agreements is enduring and expect growth to re-accelerate in the long-term as management refocuses go-to-market efforts,” the fund said in a stock report.
DocuSign closed Friday’s session down 42.22% at $135.09 and were seen slipping an incremental 0.77% in after-hours trading.