Cathie Wood's Latest Shake-up: Major Trades at Ark Invest

On Monday, Cathie Wood-led Ark Invest made significant trades, impacting notable stocks including Coinbase Global Inc (COIN), Meta Platforms Inc (META), Palantir Technologies Inc (PLTR), Block Inc (SQ), Tesla Inc (TSLA), and Amazon.com Inc (AMZN).

The Block Inc. Trade

Ark Invest sold 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 action comes despite Block's positive second-quarter results, which highlighted growth in its Cash App and new strategic innovations by the company.

CEO Jack Dorsey announced cuts at Tidal, shifting its structure to resemble a smaller startup focusing on engineering and design. This restructuring aims to better equip Block for competition in the streaming market.

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

The Palantir Trade

Ark Invest's ARKK and ARKF ETFs sold 158,457 shares of Palantir. The value of this trade, at Palantir's closing price of $41.41, amounts to about $6.7 million. This decision came after Palantir's recent third-quarter earnings report exceeded expectations.

Palantir’s latest earnings showed a revenue of $725.52 million, surpassing the anticipated $701.13 million. The company recorded a 30% year-over-year revenue growth, with U.S. revenue increasing by 44% to $499 million. U.S. Commercial revenue grew by 54%, while U.S. Government revenue rose by 40%.

Despite these strong financials, Ark Invest decided to reduce its Palantir holdings, continuing its trend of selling shares.

The Coinbase Global Inc. Trade

Ark Invest’s ARKF fund acquired 24,474 shares of Coinbase, valued at $4.6 million. Coinbase shares closed up 1.85% at $186.27. In its recent report, Coinbase revealed a third-quarter revenue of $1.21 billion and earnings of $0.28 per share, which were below analyst expectations.

The company also noted declines in trading volume and transaction revenue compared to the previous quarter. Nonetheless, Coinbase is witnessing growth in its Base Layer Two network and expects higher sales and marketing expenses in Q4. The upcoming 2024 U.S. elections could affect market volatility, as highlighted by the company.

The Meta Platforms Inc Trade

The Ark Next Generation Internet ETF (ARKW) purchased 6,153 shares of Meta Platforms Inc following a strong third-quarter performance that surpassed analyst forecasts for revenue and earnings per share. The value of this trade, based on Meta's closing price of $560.68, is about $3.45 million.

The Tesla Trade

Ark Invest’s ETFs, ARKK and ARKW, sold 9,984 shares of Tesla. With Tesla's closing price at $242.84, this trade's value stands at approximately $2.42 million. This move follows a report of a 5.3% decline in Tesla’s deliveries of China-made vehicles in October compared to the same period last year.

Ark Invest has been systematically reducing its holdings in Tesla for some time now.

The Amazon Trade

The Ark Autonomous Technology & Robotics ETF (ARKQ) purchased 5,843 shares of Amazon. The value of this acquisition, at Amazon's closing price of $195.78, is approximately $1.14 million. This move follows a strong performance by Amazon in Q3, with net sales increasing by 11% year-over-year, exceeding market expectations.

Other Key Trades

Alongside major trades, Ark Invest’s ARKF fund sold shares of DraftKings Inc (DKNG) while buying shares of Shopify Inc (SHOP). Ark Invest’s ARKG fund acquired shares of Illumina Inc (ILMN) and divested from Standard BioTools Inc (LAB). The firm also bought shares of Moderna Inc (MRNA), Nurix Therapeutics Inc (NRIX), and Senti Biosciences Inc (SNTI). Additionally, Ark Invest’s ARKK fund purchased shares of Recursion Pharmaceuticals Inc (RXRX), Twist Bioscience Corp (TWST), and Beam Therapeutics Inc (BEAM).

Cathie, Invest, Trading