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Shares of Twitter fell after the CEO was fired. Who started buying them?

Ark Invest founder Katie Wood bought a million shares of Twitter, after CEO Jack Dorsey left the company. The investor invested almost $50 million. This is reported on RBC.

Kathy Wood Foundation invests in Twitter

The purchase of Twitter shares became the largest investment of the Ark Invest fund since July 23 of this year.

Cathy Wood started buying the social network’s shares against the backdrop of a sharp drop in their quotes: in two days — November 29 and 30 — the shares lost a total of 6.7%. The company began to fall on Monday on news that CEO Jack Dorsey had left his position and was replaced by CTO Parag Arghavala.

Until now, Jack Dorsey was the CEO of two companies, Twitter and fintech Square. The market initially reacted positively to the news of Dorsey’s dismissal, with shares jumping 11% in early trading on Monday.

The end of the Dorsey era on Twitter

Dorsey’s Twitter era was one of the biggest booms for US tech stocks, but Twitter missed most of it. Bloomberg noted that during the leadership of Dorsey, who took over as Twitter’s chairman six years ago, the social network’s shares rose by only 75%.

During that time, the NASDAQ 100 index rose more than 280%, and the S&P 500 jumped almost 140%. Shares of Apple increased more than 450%, Amazon jumped 580%, Alphabet jumped about 345%, and Microsoft jumped 640%. At the same time, the quotation of Square, which was also founded by Jack Dorsey, showed an increase in value of more than 2,000% since its IPO in 2015.

At the time of writing, 1 share of Twitter costs $42.82. Wood bought 1 million at a price of $43.94.