Meet The On-Demand Air Travel Company Cathie Wood's Ark Invest Picked Up Shares In A Big Chunk Friday

Daily trades of influential fund manager Cathie Wood's ARK Invest are invariably tracked by investors to hit upon the next winning idea. On Friday, the firm bulked up on shares of on-demand air travel company Blade Air Mobility Inc BLDE.

What Happened: Ark Invest's ARK Autonomous Technology & Robotics ETF ARKQ, an actively managed ETF that invests in companies engaged in energy, automation and manufacturing, materials, artificial intelligence and transportation, picked up 329,425 shares of Blade Air on Friday.

Blade Air is a technology-powered air mobility platform that provides cost-effective air transportation. Blade arranges charter and by-the-seat flights with helicopters, jets, turboprops and amphibious seaplanes operating in various locations throughout the U.S.

Blade provides transportation to its customers through a network of contracted aircraft operators and does not own, lease or operate its own aircraft. Its asset-light business model was developed to be scalable and profitable using conventional helicopters while enabling a seamless transition to electric vertical aircraft.

It came public through a SPAC deal with a blank check company called Experience Investment Corp in May.

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Vast Market Opportunity Ahead: Blade Air has a large untapped user base with potential for meaningful adoption upside in key markets, Credit Suisse analyst Stephen Ju said in a note, adding that this is because of the ease and convenience compared to other modes of transportation and ongoing updates to its pricing structure to attract a broader array of consumers.

The analyst noted that new route expansion is set to begin in 2022 with trips along the Northeast Corridor, which positions Blade for accelerated revenue growth with minimal attributable capital expenditures given its asset-light business model.

BLDE Price Action: Following the merger with Experience Investment, the company began trading on the Nasdaq on May 10. The stock closed the session at $7.72. Since then, Blade Air has gained about 30%.

The average analysts' price target for Blade Air shares is $15.25, according to this database. This suggests over 50% upside potential.

At last check, Blade Air shares were up 8.37% at $10.87 Monday morning.

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Photo: Courtesy eVTOL