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 (NASDAQ:TSLA) and META Platforms Inc (NASDAQ:META), while reducing its stake in Coinbase Global Inc (NASDAQ:COIN) and NVIDIA Corp (NASDAQ: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 (NYSE:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), and ARK Next Generation Internet ETF (NYSE: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 (CRYPTO: BTC) 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…
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