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Cathie Wood's Ark Invest sold Zillow for the second day after buying the decline earlier in the week.

On Thursday, Cathie Wood's Ark Invest sold Zillow shares for the second day in a row.

The transactions constitute a sharp contrast to Ark's purchase of shares on Tuesday as the stock's price plunged.

Following a 3.9 million share sale on Wednesday, Wood's ARKK ETF sold 1.8 million Zillow shares on Thursday.

Cathie Wood's Ark Investment Management sold Zillow stock for the second day in a row on Thursday after buying shares in the troubled online real estate company days earlier on Tuesday.

According to a daily trading statement, Wood's Ark Innovation ETF sold 1.8 million Zillow shares on Thursday. Based on Zillow's closing price of $67.28 on Thursday, the sale was worth $121 million. The action came after a 3.9 million share sale on Wednesday.

On Tuesday, Wood's flagship ARK Innovation ETF bought Zillow stock after the company reported third-quarter earnings that fell short of analyst expectations and included a $304 million write-down on its home inventory. Due to the volatility in housing markets across the United States, the company is also officially ceasing its iBuying service.

Zillow's stock has dropped 32% since the beginning of the week.

The volatility of the pandemic damaged Zillow's instant-buying, or iBuying, division, which permitted the company to quickly buy up homes for sale and flip them for a profit. Big demographic swings made it difficult to predict the short-term trajectory of house prices.

Rich Barton, Zillow's CEO, confessed that the company could not establish an algorithm and acquisition process that accurately predicted the housing market's destiny. He also revealed on Tuesday that 25% of the company's staff would be laid off.