Cathie Wood, founder and CEO of ARK Invest Ark Invest and Pavlo Gorchar/SOPA Images/LightRocket via Getty Images
Cathie Wood, Ark Invest, dumped Zillow stock on Thursday for the second consecutive day.
These sales represent a turnaround of Ark's Tuesday buying, when Ark bought shares at a steep discount.
Wood's ARKK ETF, which was divested of 3.9 Million shares on Wednesday, sold 1.8M Zillow shares Thursday.
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After snapping up shares of Zillow days earlier, Ark Investment Management bought shares from Cathie Wood.
According to a daily trading update, Wood's Ark Innovation ETF sold approximately 1.8 million Zillow shares Thursday. Based on Zillow closing price of $67.28, the sale was worth approximately $121 million. The Thursday sale follows a Wednesday sale of 3.9million shares.
Wood's flagship ARK Innovation ETF bought Zillow shares Tuesday after the firm revealed third quarter results that were below analyst expectations and included a $304 Million writedown in relation to its housing inventory. Due to volatility in US housing markets, the company announced that it will officially end its iBuying business.
The stock of Zillow has fallen 32% since the beginning of the week.
Zillow's iBuying, or instant-buying division, allowed the company to buy homes quickly and then flip them for a profit. However, the volatility of the pandemic caused major demographic shifts that made it difficult to predict how house prices would change in the near future.
Rich Barton, the CEO of Zillow, acknowledged that Zillow was unable to master the acquisition process and an algorithm that could predict the trajectory for the country's housing market. On Tuesday, he also announced that 25% of the company's workforce will be laid off.
ARKK was lower than expected at $123.88 on Friday at 10:27 a.m ET.
