Several of the strong performing Ark ETFS from Cathie Wood bought shares of two underperforming stocks on Tuesday.
What Happened: Shares of Alibaba Group Holding (NYSE:BABA) were down 8% Tuesday after the Ant Group IPO was pulled in China. Alibaba owns over 30% of Ant Group.
Paypal Holdings Inc (NASDAQ:PYPL) shares were down 4% Tuesday after reporting third-quarter earnings.
The Ark Fintech Innovation ETF (NYSE:ARKF) bought 9,443 shares of Alibaba and 23,285 shares of Paypal on Tuesday.
The Ark Innovation ETF (NYSE:ARKK) bought 538,871 shares of Paypal.
The Ark Next Generation Internet ETF (NYSE:ARKW) bought 116,504 shares of Paypal and 29,683 shares of Alibaba.
Related Link: Cathie Wood Increases Teladoc Holdings Across Ark ETFs
Why It’s Important: The purchases by all three ETFs represented around 1% of total assets for each fund.
Ark Innovation and Ark Next Generation made sizable sales of Tesla Inc (NASDAQ:TSLA) shares on Tuesday. Both ETFs sold around 0.65% of total fund assets that were attributed to the electric vehicle company. Tesla shares are up over 400% in 2020.
Paypal and Alibaba are top 10 holdings in the Fintech Innovation ETF. Paypal became a new holding in the Ark Innovation ETF.
Price Action: Alibaba shares are up 3% Wednesday. Paypal shares are trading 8% higher Wednesday.
Photo credit: Andy Mitchell, Flickr
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