Cathie Wood’s ARK Invest made headlines recently with a series of strategic portfolio adjustments that reflect an ongoing commitment to innovative tech and defense sectors. On February 27, the investment firm executed various trades, including both meaningful purchases and reductions across several key companies.
The highlight of the day was a significant investment in Kratos Defense & Security Solutions where ARK acquired 252,169 shares valued at $23.2 million. This move aligns perfectly with ARK’s focus on cutting-edge robotics and automation as Kratos concentrates on unmanned vehicles and autonomous defense systems.
Following closely, ARK also invested about $19.4 million in CoreWeave, an emerging player in AI cloud infrastructure, purchasing 198,980 shares across its ARKK and ARKW ETFs. This investment came despite a sharp 19% decline in CoreWeave’s stock price after the company reported mixed fourth-quarter results. Though the revenue figures were strong, investors were startled by wider losses and increased expenditures. By buying into the downturn, ARK seems to signal confidence in CoreWeave’s potential, viewing the drop as a temporary setback rather than a long-term issue.
CoreWeave, Inc. Class A Common Stock, CRWV
Market analysts echo ARK’s optimistic sentiment toward CoreWeave, which currently carries a Moderate Buy consensus on Wall Street. The stock’s average price target of $114.18 indicates a compelling upside of approximately 43.5%, suggesting that the market may have underestimated the company’s growth trajectory.
Shifting Gears: Reductions in Teradyne and Rocket Lab
In contrast to the bullish acquisitions, ARK also took steps to reduce its positions in select holdings. Notably, they sold 38,773 shares of Teradyne, valued at $12.9 million. As Teradyne produces semiconductor testing equipment and automation tools, this sale follows a broader trend of ARK scaling back its involvement in the company.
Moreover, ARK trimmed its stake in Rocket Lab, shedding 46,921 shares worth around $3.4 million. Despite Rocket Lab’s recent earnings report that exceeded expectations, the stock dropped nearly 5% in the wake of news that its first launch of the larger Neutron rocket has been postponed until late 2026. This timing may have dampened investor enthusiasm, prompting ARK to rethink its strategy.
Additional Trades: Biotech and Tech Adjustments
ARK’s trading activity on February 27 was not limited to these notable shifts. They also sold 46,389 shares of Roku, totaling $4.3 million, although specific reasoning behind this was not provided. On the biotech front, ARK acquired 459,525 shares of Generate Biomedicines for $7.4 million, while offloading 39,423 shares of Ionis Pharmaceuticals for $3.2 million.
Other minor adjustments included selling down Deere & Co, trimming Guardant Health, and even some reductions and acquisitions among smaller firms. Overall, the buys in CoreWeave and Kratos represented ARK’s largest single trades that day, combining for over $42 million.
As the crypto and broader investment landscapes continue to evolve, Wood’s calculated moves reflect an unwavering belief in transformative technologies and a strategy that seeks to capitalize on short-term market reactions to position for future growth.
