Cathie Wood’s ARK writes down Twitter stake, wants to buy more stock but ‘no one wants to let any go’

Cathie Wood’s ARK Investment Management has written down its stake in Elon Musk’s social media business Twitter by 47%, according to the Wall Street Journal.

The billionaire and Tesla (NASDAQ:) CEO took Twitter private last year and Wood was one of the backers of the deal.

“We take fair valuation very seriously and absolutely have had to write that [Twitter] down,” Wood told WSJ.

“The write-down is not representative of our fundamental outlook and belief in the long-term return on investment we believe that it will have for our shareholders.”

Wood also said that she is interested in boosting her Twitter investment at the current valuation levels, but “no one wants to let any go.”

“So that tells you something,” she added.

A few days ago, Musk tweeted that Twitter still has negative cash flow and has suffered a 50% drop in advertising revenue, in addition to a “heavy debt load.”

On Meta Platforms (NASDAQ:) launching Twitter-rival Threads, Wood commented.

“We think they can coexist. I think Threads has lit the competitive fire or taken it up a notch and it will be good for Twitter. We also think that longer term, Elon and team are very serious that they’re going to turn this into an everything app.”