Cathie Wood's Ark Invest Purchases Shopify and Reddit Shares, Offloads Coinbase Stock

Benzinga05-09

On Wednesday, Cathie Wood’s Ark Invest made some significant trades. The most prominent among these were the purchases of Shopify Inc and Reddit Inc, and the selling off of Coinbase Global Inc shares.

The Shopify Trade

Ark Invest’s Ark Fintech Innovation ETF (ARKF), ARK Innovation ETF (ARKK), and ARK Next Generation Internet ETF (ARKW) bought a combined total of 482,042 shares of Shopify. The trade was valued at $30.24 million. For the day, Shopify shares plunged 18.59% to $62.73 in the regular session.

This move came despite the company’s stock plunging after it reported its quarterly results. According to a Benzinga report, Shopify’s revenue grew by 23% year-over-year to $1.86 billion, beating the consensus estimate of $1.845 billion. However, the company reported a loss of $(273) million after a profit of $68 million a year ago.

The Reddit Trade

Ark Invest’s ETFs ARKF and ARKW also bought a combined total of 115,394 shares of Reddit. The transaction amounted to $5.93 million. On Wednesday, Reddit shares closed 4.05% higher at $51.40.

The social media platform’s shares soared soon after it reported its first-quarter financial results and gave strong Q2 guidance. Reddit’s quarterly sales were $242.963 million, beating the analyst consensus estimate of $212.83 million by 14.16%.

The Coinbase Trade

Ark Invest’s ETFs ARKF and ARKW sold a total of 41,964 shares of Coinbase Global Inc. The amount of shares purchased was worth $8.89 million. Coinbase shares closed 1.46% lower at $211.20 for the day.

Ark’s move was made amidst a softening Bitcoin price, as reported byBenzinga. Coinbase’s shares closed at $211.2 on Wednesday, marking a decrease of 1.46%.

Other Key Trades:

Ark Invest’s ARKF sold shares of Global-E Online Ltd. ARKF also sold shares each of Twilio Inc and StoneCo Ltd.
ARKK sold shares of Draftkings Inc and shares of Twist Bioscience Corp. ARKQ sold shares of AeroVironment Inc and those of of 2U Inc but bought stock of Rocket Lab USA Inc.

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Comments

SPACE ROCKET
05-09
SPACE ROCKET
Poor decision on Cathie's part. COIN would have higher returns compared to $Shopify(SHOP)$ and $Palantir Technologies Inc.(PLTR)$
- SPACE ROCKET:
  Buying in now seems like a huge risk to me as the risk to downside seems higher than the possibility of an upside(especially in uncertain times - stagflation, first rate cut not in view etc). But if you're up for quick trades in and out,then I suggest you see historical data and plot out trend lines
- SPACE ROCKET:
  The only time I'd scoop these up is when we face a huge correction / recession / pandemic. Other than that, I'm abit worried that PLTR will not grow my money fast enough. Even NVIDIA is facing some resistance after its year to date run up.
- SPACE ROCKET:
  Plus headwinds and poor results from related peers like NVIDIA, AMD etc would affect PLTR's outlook and price, regardless of whether PLTR is good or not. Plus the market is kinda saturated for these, so growth potential seems bleak. At such lofty price levels, I'd reconsider.
- SPACE ROCKET:
  Hmm I'm not too sure about PLTR, but my observations tell me that it's a stock that trades sideways (not very popular; hence volatility is low - that also mean that striking it rich on this stock is unlikely).
- EL123:
  can hear more about your opinion towards PLTR ?