Cathie Wood’s ARK Invest made significant portfolio adjustments on February 4, strategically capitalizing on stock dips following disappointing earnings reports. The firm’s latest moves were revealed in disclosures from their exchange-traded funds.
One of the most notable transactions involved the purchase of 141,108 shares of Advanced Micro Devices (AMD) across multiple ETFs, amounting to approximately $34.16 million. This acquisition took place as AMD’s stock plummeted over 17% during trading on Wednesday.
The decline in AMD’s stock price was in response to the company’s Q4 earnings announcement. Although it surpassed earnings expectations, investor sentiment soured due to cautious commentary surrounding near-term artificial intelligence (AI) outlooks. Wood’s purchase suggests a firm-held belief in AMD’s role in the AI chip sector, despite the temporary sell-off.
In addition to AMD, ARK Invest acquired 35,766 shares of Tesla, valued at around $15.09 million, through the ARK Space Exploration ETF. Tesla’s stock also faced a downturn, closing 4% lower at $406.01 on the same day.
ARK Champions AI Healthcare Initiatives
Continuing with its investment strategy focused on AI technologies, ARK bolstered its holdings in healthcare solutions by purchasing 407,950 shares of Tempus AI for about $22.83 million. Tempus AI, known for its data analytics capabilities in the medical field, aligns with ARK’s expanding vision in AI-driven healthcare.
Additionally, the firm acquired 36,065 shares in GeneDx Holdings for a total of $3.44 million and added 37,379 shares of Kodiak AI to its portfolio, showcasing its commitment to innovative healthcare technologies.
Major Shift: The Teradyne Disposition
The most significant divestment of the day was in Teradyne, with ARK selling 258,001 shares across various ETFs for a total of approximately $73.01 million. This move marks a continuation of ARK’s efforts to reduce its exposure to the semiconductor testing equipment manufacturer.
ARK’s shares of Teradyne have dwindled throughout the week, with this sale representing the largest single-day reduction in their position. Alongside this, the firm also trimmed holdings in digital advertising and e-commerce sectors, selling 190,830 shares of Global-E Online valued at roughly $6.47 million and decreasing Trade Desk holdings by 156,758 shares, which totaled about $4.26 million.
During Wednesday’s trading session, ARK also sold 107,092 shares of Pinterest, indicating Wood’s team is reallocating capital among different sectors as they seek the best opportunities.
These recent moves encapsulate ARK Invest’s philosophy of acquiring stocks during downturns while strategically rotating out of other positions. As AMD and Tesla experienced declines amid broader market weaknesses, Wood’s purchasing approach during these sell-offs reaffirms her long-term outlook on these companies.
