Cathie Wood's Ark Invest Bolsters Portfolio With Tesla, Meta Platforms Shares — Dumps Coinbase, Nvidia Amid Surge In Stock Price

In a strategic maneuver on Wednesday, Cathie Wood-led Ark Invest made notable adjustments to its portfolio, demonstrating a keen insight into the evolving market landscape. The firm’s decision to increase its holdings in Tesla Inc TSLA and META Platforms Inc META, while reducing its stake in Coinbase Global Inc COIN and NVIDIA Corp NVDA, signals a calculated response to recent developments and future growth prospects.

The Tesla Trade

Ark Invest’s acquisition of 145,455 Tesla shares, valued at $27.45 million, underscores Cathie Wood’s confidence in the electric vehicle giant amidst market fluctuations. The transactions were made through ARK Innovation ETF ARKK, ARK Autonomous Technology & Robotics ETF ARKQ, and ARK Next Generation Internet ETF ARKW. On Wednesday, Tesla shares closed 2.55% higher at $188.71.

This move aligns with Wood’s optimistic view on Tesla’s growth trajectory, further emphasized by the firm’s continued investment despite Tesla’s fourth-quarter earnings miss and the surrounding discussions on Tesla’s recovery and Elon Musk’s compensation controversy.

The Coinbase Trade

Coinbase shares worth $34.33 million were purchased by Ark on Wednesday. The 214,068 shares were purchased through ARKK, ARKF, and ARKW. On the day, Coinbase shares rallied 14.2% at $160.38.

Earlier last month, Ark Invest halted selling Coinbase shares, reflecting a nuanced approach to its investments amidst the cryptocurrency exchange’s rally and the then buzz around a potential spot Bitcoin BTC/USD ETF approval by the SEC. This pause in selling, after consistent offloads since July 2023, suggested a strategic profit-taking move by Ark, considering Coinbase’s significant weight across its key funds and the overall positive trajectory of cryptocurrency-related assets.

See Also: Cathie Wood’s Ark Invest Lost More Than $14B In Wealth Over Past Decade, Report

The NVIDIA Trade

Ark’s decision to sell 10,601 shares of NVIDIA Corp, totaling $7.83 million, reflects a strategic pivot amidst the AI sector’s valuation discussions. The sale was made through ARKQ. Nvidia shares closed 2.46% higher at $739 on Wednesday.

Despite Nvidia’s significant role in AI development, concerns over its “really expensive” valuation prompted Ark to adjust its holdings, highlighting the firm’s agile investment strategy in response to market dynamics.

The Meta Platforms Trade

The firm purchased 7,796 shares of Mark Zuckerberg-led Meta on Wednesday. The transaction, via Ark Fintech Innovation ETF ARKF, was valued at $3.69 million. Meta shares closed 2.86% higher at $473.28 for the day.

Following a robust fourth-quarter earnings report, Ark Invest’s interest in Meta Platforms is backed by analyst upgrades and Meta’s announcement of its first quarterly dividend. Analysts’ increased price targets and the company’s revenue acceleration and product innovation underscore Meta’s strong position in the market, aligning with Ark’s investment strategy focused on growth and efficiency.

Other Key Trades:

• Increased investments in biotech firms like Intellia Therapeutics Inc and Ginkgo Bioworks Holdings Inc, indicating a bullish outlook on genomics.
• Diversified its portfolio by acquiring shares in emerging companies such as Robinhood Markets Inc and Spotify Technology SA, showcasing confidence in digital and tech-driven growth sectors.

Photo via Ark Invest.

Read Next: Cathie Wood Blasts Delaware Court’s Move To Rescind Elon Musk’s $56B Tesla Pay As ‘Un-American’