Cathie Wood’s ARK Invest made headlines last week with a series of strategic portfolio adjustments, reflecting a notable shift in focus towards fintech and Chinese technologies. On October 24, the investment firm lightened its holdings in several technology stocks, selling off significant portions of Advanced Micro Devices (AMD) and Shopify.
The firm’s largest transaction on that day involved the sale of 23,717 shares of AMD, generating $5.57 million. This decision comes in the wake of AMD’s stock surge driven by increasing demand for AI chips. Additionally, ARK divested 39,077 shares of Shopify, a move worth $6.53 million. The total sell-off included 107,510 shares of Iridium Communications and 32,384 shares of Palantir, collectively surpassing $9 million in liquidated assets.
The ARK Genomic Revolution ETF also saw a reduction in its Tempus AI holdings, with 19,391 shares sold for approximately $1.69 million. These sales indicate a strategic gain realization from stocks that have performed well throughout the year.
In a contrasting strategy, on October 27, ARK poured $30.9 million into Block Inc. shares across multiple ETFs. This included the acquisition of 210,916 shares by the ARK Innovation ETF and 59,827 shares by the ARK Next Generation Internet ETF. The ARK Fintech Innovation ETF also contributed with the purchase of 114,842 Block shares, marking a substantial increase in exposure to crypto-related investments. Block Inc., co-founded by Jack Dorsey, plays a significant role within the crypto ecosystem with its diverse offerings including Square and Cash App.
Renewed Focus on Fintech
Cathie Wood’s firm demonstrated renewed enthusiasm for fintech, notably investing around $21 million in Robinhood Markets on October 24. This shift reflects an expanding interest in financial technology, suggesting that ARK is positioning itself to benefit from the evolving trading landscape.
Moreover, ARK had its eyes on DraftKings, acquiring 268,833 shares across two ETFs on October 27. This move highlights the firm’s investment in digital sports entertainment, particularly following DraftKings’ recent acquisition of Railbird Technologies aimed at enhancing its market offerings.
ARK also initiated a new position in Netflix, purchasing approximately 15,700 shares valued at nearly $17 million, taking advantage of a recent dip in Netflix’s stock price.
Expanding Chinese Tech and Biotech Investments
In its quest for growth, ARK bolstered its investments in Chinese technology, acquiring 51,323 shares of Baidu totaling $6.18 million and adding over 61,000 shares of Alibaba. Wood has previously noted that Chinese tech valuations are significantly lower than their U.S. counterparts, positioning these investments as potentially lucrative.
ARK’s investments in the biotech sector remain robust, with purchases in Pacific Biosciences, Arcturus Therapeutics, and 10x Genomics totaling over $5 million. The firm has increased its investment in Qualcomm to an impressive $33 million, further reflecting its confidence in the technology sector.
As of October 27, Block’s stock closed at $80.15, reflecting a modest increase of 0.77%. With its latest moves, ARK Invest continues to adapt and evolve, meticulously navigating the fast-paced world of technology and finance, much to the intrigue of market observers.
