Cathie Wood's Significant Trade Moves: A Shift in Strategy

On Monday, Cathie Wood-led Ark Invest made noteworthy trades in various stocks, highlighting key adjustments in its portfolio. The most significant trades involved Coinbase Global Inc COIN, Meta Platforms Inc META, Palantir Technologies Inc PLTR, Block Inc SQ, Tesla Inc TSLA, and Amazon.com, Inc AMZN.

Block Inc. Trade Details

Ark Invest offloaded a total of 232,063 shares of Block Inc across its Ark Fintech Innovation ETF ARKF, ARK Innovation ETF ARKK, and ARK Next Generation Internet ETF ARKW. This decision came despite Block's recent positive second-quarter report, which highlighted growth in its Cash App and innovative advancements.

CEO Jack Dorsey announced additional layoffs at Tidal, aiming to reshape the company into a streamlined startup with a focused engineering and design team. Block, which acquired Tidal in 2021, has struggled to keep pace in the competitive streaming sector.

The total value of Ark's Block trade, based on the closing price of $72.69 per share, is around $16.9 million.

Palantir Trade Insights

Ark Invest’s ARKK and ARKF ETFs sold 158,457 shares of Palantir Technologies. At Palantir's closing price of $41.41, this trade equates to approximately $6.7 million. This move occurred following Palantir’s robust third-quarter earnings report, which surpassed expectations.

According to recent reports, Palantir reported a revenue of $725.52 million for the third quarter, exceeding the consensus estimate of $701.13 million. This represents a significant 30% increase in total revenue year-over-year, with U.S. revenue growing by 44% to $499 million.

Interestingly, despite these strong financial outcomes, Ark Invest has chosen to reduce its holdings in Palantir.

Coinbase Global Inc. Trade Activity

Ark’s ARKF fund purchased 24,474 shares of Coinbase, valued at approximately $4.6 million. Coinbase shares experienced a slight increase, closing at $186.27, up 1.85% for the day. Despite these gains, Coinbase's financial results in October were below analyst expectations, with trading volume declining.

Meta Platforms Inc Investment

In another significant move, Ark Invest’s ARKW fund acquired 6,153 shares of Meta Platforms Inc, valued at around $3.45 million based on a closing price of $560.68 per share. This investment follows Meta's impressive third-quarter earnings, which exceeded analyst predictions.

Tesla Trade Summary

Additionally, Ark Invest sold 9,984 shares of Tesla across its ETFs, with the value of this trade reaching approximately $2.42 million at Tesla's closing price of $242.84. This decision comes in light of a reported decline in Tesla’s vehicle deliveries from China, indicating a 5.3% drop compared to the previous year.

Ark has been gradually decreasing its stake in Tesla over time.

Amazon Trade Highlights

Furthermore, Ark Invest’s ARKQ ETF purchased 5,843 shares of Amazon, totaling around $1.14 million at a closing price of $195.78. This decision follows Amazon’s strong third-quarter results, where net sales grew 11% year-over-year, surpassing market expectations.

Other Notable Trades

In addition to these major trades, Ark Invest made several other notable transactions:

• Ark's ARKF fund sold shares of Draftkings Inc and purchased shares of Shopify Inc.
• The ARKG fund acquired shares of Illumina Inc while offloading shares of Standard BioTools Inc. They also purchased shares of Moderna Inc, Nurix Therapeutics Inc, and Senti Biosciences Inc.
• Moreover, the ARKK fund bought shares of Recursion Pharmaceuticals Inc, Twist Bioscience Corp, and Beam Therapeutics Inc.

Cathie, Wood, Investments