Cathie Wood's Ark ETFs bought over 3 million shares of Skillz the day it reported earnings. Now the stock is down 10% after shaky results.

• Two of Cathie Wood's ARK ETFs bought a combined 3,071,654 shares of Skillz on Tuesday.
• The shares were worth some $52 million before a significant drop hit the stock today.
• Skillz reported worse than expected losses in its quarterly results, but there were a number of bright spots as well.

Two of Cathie Wood's ARK ETFs bought a combined 3,071,654 shares of the online mobile multiplayer video game competition platform Skillz on Tuesday.

Specifically, the ARK Innovation ETF bought 2,717,021 shares while the ARK Next Generation Internet ETF bought 354,633 shares.

Skillz is now the 43^rd largest holding of the ARK Innovation ETF (8,514,573 shares) and the 20^th largest holding of the ARK Next Generation Internet ETF (7,050,447 shares).

Combined, the shares were worth some $52 million based on Tuesday's closing price of $16.94 per share.

After Wood's buys, Skillz released its quarterly earnings results that included larger than expected losses and the stock fell as much as 10.83% on Wednesday.

Skillz more than doubled its quarterly losses versus the same period a year ago in the first quarter, losing $0.15 per share compared to analysts' estimates for a $0.10 loss.

Still, there were plenty of bright spots in the quarterly report. First-quarter revenue jumped 92% year-over-year to $84 million and paid active users surged 81%.

Skillz also raised its full-year revenue guidance to $375 million, which equates to 63% year-over-year growth.

The company landed some analyst support from Wedbush analyst Michael Pachter post-earnings as well.

Pachter maintained his "buy" rating and $34 price target on the stock, citing the impressive growth of the company's gaming platform.

Skillz also recently added ex-Airbnb Executive Ian Lee as its chief financial officer. Lee was the head of investor relations during Airbnb's December, 2020 IPO. He holds an MBA in Finance from the Wharton School at the University of Pennsylvania.

Skillz launched a game developer challenge with the NFL last Wednesday as well, adding to the long-term bull case for the stock.

Shares of Skillz traded down 9.29% as of 3:38 p.m. ET on Wednesday.