PagerDuty, a cloud computing and software company, has announced its plans to issue new notes worth $350 million to cover the purchase of older notes and to cover corporate expenses. Following this announcement, shares of PagerDuty dropped nearly 2%, with a temporary decrease of up to 10% after hours before stabilizing. On the other hand, Cathie Wood’s Ark Invest bought nearly $8 million worth of PagerDuty stock, with the bulk of the purchase coming from the flagship Innovation ETF. This boosted Ark’s total holding of PagerDuty shares to 8.4 million, valued at $180.5 million and weighted at 2.6% of the fund. The Next Generation Internet ETF of Ark Invest also acquired around 60,000 shares of PagerDuty, increasing its holding to approximately 1.5 million shares, worth $32.1 million and weighted at 2.5% of the fund.
Despite prominent tech giants like Tesla and Nvidia experiencing significant growth this year, PagerDuty has been struggling. The company’s stock is down about 20% for the year, with a dip in April and another in June. Analysts have an average price target of $28 for PagerDuty, with a split between hold and buy ratings. Morgan Stanley recently lowered its price target to $32 from $35. In its fiscal second-quarter earnings report, PagerDuty reported a GAAP operating loss of $26.2 million but noted a 19% increase in revenue from the previous year. The company’s CEO, Jennifer Tejada, highlighted PagerDuty’s strong growth and improved operational efficiency, as well as advancements in their generative AI offerings.
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