Cathie Wood's Ark bought the dip in Peloton as the bike maker tumbled amid a larger than expected drop in its earnings

• Cathie Wood bought the dip in Peloton on Monday as the stock continued to tumble in the wake of disappointing earnings.
• The Ark Next Generation ETF bought an additional 115,515 shares of Peloton.
• The exchange traded fund now owns roughly 1.7 million shares of Peloton worth $172 million.

Cathie Wood bought the dip in Peloton as the fitness equipment maker continued to tumble in the wake of its disappointing fourth quarter earnings report.

Fund filings show that Wood's Ark Next Generation Internet ETF (ARKW) added 115,515 shares of Peloton Monday. The stock slipped 2% in the first day of the trading week, and has fallen 13% since releasing its earnings report last Thursday.

In the fourth fiscal quarter, Peloton's revenue growth slowed and the company posted a net loss wider than expected. On the same day as its earnings, the fitness equipment maker also announced that it is cutting the price of its entry-level Bike by $400 to $1,495, a move that it expects will impact near-term profitability.

Last Friday, the company said it was subpoenaed by federal officials about injuries related to its products. Peloton recalled its Tread+ treadmills following the death of one child and 70 incidents earlier this year.

The Ark fund now owns roughly 1.7 million shares of Peloton worth $172 million. The company is the 14th largest holding in the fund.

Peloton slipped as low as $99.10 a share Tuesday, the lowest point in 11 months. Shares of Peloton are down 32% year-to-date. ARKW is up roughly 3% for 2021.