Cathie Wood's Significant Fund Reallocations: A Closer Look

On Monday, during a notable trading session, Cathie Wood-led Ark Invest executed significant trades involving various companies. This involved substantial movements in shares of 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. Trading Activity

Ark Invest chose to sell 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 comes even after Block reported positive growth figures during its recent second-quarter results, particularly in its Cash App and developing innovative strategies.

CEO Jack Dorsey has announced further layoffs at Tidal, aiming for a streamlined approach where the company operates with a small, specialized team in engineering and design. The streaming service, which was acquired by Block in 2021, continues to face tough competition.

The total value of the shares sold was approximately $16.9 million, based on Monday's closing price of $72.69.

Palantir Technologies Share Changes

Ark Invest’s ARKK and ARKF ETFs notably offloaded 158,457 shares of Palantir, which had a closing price of $41.41 on Monday, leading to a trade value of approximately $6.7 million. This decision came despite Palantir's recent third-quarter earnings exceeding market expectations.

According to reports, Palantir posted a revenue of $725.52 million, beating the consensus estimate of $701.13 million. The company also saw a significant year-over-year revenue increase of 30%, with U.S. revenue rising by 44% to reach $499 million. U.S. commercial and government revenue also grew markedly.

Even with these strong financials, Ark Invest has continued its trend of reducing shares in Palantir.

Coinbase Global's New Shares

Ark Invest's ARKF fund made a purchase of 24,474 shares of Coinbase, with a transaction value of $4.6 million. On the same day, Coinbase’s stock rose by 1.85% to close at $186.27.

Coinbase’s recent third-quarter earnings reported revenue of $1.21 billion with earnings of $0.28 per share, which fell short of analysts’ projections. The company noted a decline in both trading volume and transaction revenues. Nonetheless, Coinbase experienced growth in its Base Layer Two network and anticipates higher sales and marketing costs in the fourth quarter.

Investments in Meta Platforms

Adding to its holdings, Ark Invest’s ARK Next Generation Internet ETF (ARKW) acquired 6,153 shares of Meta Platforms Inc, valuing the transaction at approximately $3.45 million, based on a closing price of $560.68 per share. This purchase follows Meta’s recent impressive third-quarter report which surpassed analysts’ expectations for revenue and earnings.

Tesla Shares Sold Off

Ark Invest’s funds, ARKK and ARKW, sold 9,984 shares of Tesla at a closing price of $242.84, resulting in a trade amount of around $2.42 million. This decision comes after reports showed a 5.3% decrease in Tesla's vehicle deliveries made in China for October, compared to the previous year. Ark Invest has been gradually decreasing its stake in Tesla over time.

Amazon Purchase Details

The ARK Autonomous Technology & Robotics ETF (ARKQ) purchased 5,843 shares of Amazon, valued at about $1.14 million following Amazon’s robust third-quarter results, which reported an 11% year-over-year increase in net sales significantly exceeding market forecasts.

Additional Trades by Ark Invest

• Ark Invest’s ARKF fund divested shares of Draftkings Inc (DKNG) while acquiring Shopify Inc (SHOP).
• Ark’s ARKG fund acquired shares of Illumina Inc (ILMN) and sold shares of Standard BioTools Inc (LAB), with further purchases including shares of Moderna Inc (MRNA) and Nurix Therapeutics Inc (NRIX).
• Ark’s ARKK fund also increased its stakes in Recursion Pharmaceuticals Inc (RXRX), while making additions in shares of Twist Bioscience Corp (TWST) and Beam Therapeutics Inc (BEAM).

This reshuffling of investments by Ark Invest showcases Cathie Wood’s ongoing strategy to remain agile in a rapidly changing market environment.

Cathie, Ark, Investments