Cathie Wood's Strategic Asset Reallocation: Key Trades Unveiled

On Monday, Cathie Wood-led Ark Invest executed notable trades across several significant companies. The most prominent moves involved Coinbase Global Inc, Meta Platforms Inc, Palantir Technologies Inc, Block Inc, Tesla Inc, and Amazon.com Inc.

The Block Inc. Trade

Ark Invest divested a total of 232,063 shares of Block Inc from 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 second-quarter results that indicated substantial growth in its Cash App and strategic developments. CEO Jack Dorsey has announced a new set of layoffs at Tidal, a streaming service Block acquired, as the company strives to refine its structure with a smaller, more focused team.

The trade's value, based on the company’s stock closing price of $72.69 on Monday, is estimated at around $16.9 million.

The Palantir Trade

Ark Invest sold 158,457 shares of Palantir Technologies Inc from its ARKK and ARKF ETFs. This sale amounts to approximately $6.7 million at Palantir’s closing price of $41.41. The timing coincided with the release of Palantir’s third-quarter earnings, which notably exceeded expectations with a reported revenue of $725.52 million, surpassing analyst estimates.

Despite the strong performance, Ark Invest appears to maintain its strategy of gradually reducing its Palantir holdings.

The Coinbase Global Inc. Trade

The ARKF fund also purchased 24,474 shares of Coinbase Global Inc, marking an investment valued at approximately $4.6 million. As of Monday, Coinbase's stock saw a 1.85% increase, closing at $186.27. Coinbase noted that it missed Q3 revenue expectations, reporting $1.21 billion, alongside earnings of $0.28 per share. The company continues to face challenges with declining trading volumes but is invested in expanding its Base Layer Two network.

The Meta Platforms Inc Trade

Ark’s ARK Next Generation Internet ETF (ARKW) acquired 6,153 shares of Meta Platforms Inc, reflecting a transaction of approximately $3.45 million based on a closing price of $560.68. This purchase follows Meta’s strong performance in Q3, where revenue and earnings surpassed analyst predictions.

The Tesla Trade

Ark Invest sold 9,984 shares of Tesla Inc through its ARKK and ARKW funds, valued at about $2.42 million at Tesla’s closing price of $242.84. This sale aligns with reported declines in Tesla's vehicle deliveries in China, which fell by 5.3% year-over-year in October, prompting Ark to decrease its stake in the automaker.

The Amazon Trade

In contrast, Ark Invest's ARK Autonomous Technology & Robotics ETF (ARKQ) acquired 5,843 shares of Amazon.com Inc, valued at approximately $1.14 million given Amazon’s closing price of $195.78. This strategic purchase comes on the heels of Amazon’s robust Q3 results, which reported an 11% increase in net sales year-over-year.

Other Key Trades

• Ark Invest’s ARKF fund also sold shares of DraftKings Inc (DKNG) and acquired shares of Shopify Inc (SHOP).
• The ARKG fund bought shares of Illumina Inc (ILMN) while selling those of Standard BioTools Inc (LAB). It also purchased shares of Moderna Inc (MRNA) and Nurix Therapeutics Inc (NRIX), in addition to Senti Biosciences Inc (SNTI).
• Finally, the ARKK fund acquired shares of Recursion Pharmaceuticals Inc (RXRX) along with shares of Twist Bioscience Corp (TWST), and Beam Therapeutics Inc (BEAM).

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