Cathie Wood's ARK Funds Shed More Tesla and Coinbase Shares, Continue Twilio Buying Spree

Dow Jones2023-07-19

ARK funds scooped up $11.4 million worth of Twilio shares in each of the past two sessions

Funds run by Cathie Wood’s ARK sold more than $8 million worth of Tesla’s stock Tuesday.

Funds associated with ARK Investment have been offloading shares of Tesla Inc. and Coinbase Global Inc. lately, and they continued that pattern Tuesday.

The flagship ARK Innovation ETF (ARKK) dumped 24,189 shares of Tesla during Tuesday, while the ARK Next Generation Internet ETF (ARKW), sold 4,470, according to daily trade disclosures put out by ARK. Those sales were worth $8.4 million based on Tesla’s Tuesday closing price of $293.34. ARK funds sold $13.1 million worth of Tesla shares Monday.

Tesla makes up 0.77% of the Innovation ETF after the most recent sales, along with 0.80% of the Next Generation Internet ETF.

ARK, which is run by Cathie Wood, also dumped $5.5 million more in Coinbase shares after shedding $26.3 million million worth of the stock Monday and just over $50 million worth of the stock Friday.

The ARK Fintech Innovation ETF sold 16,565 Coinbase shares, and the stock now represents 0.16% of that fund. The ARK Innovation ETF shed 26,951 shares while the ARK Next Generation Internet ETF parted with 8,708 shares.

Coinbase makes up 0.03% of the Innovation ETF and 0.06% of the Next Generation Internet ETF.

ARK funds continued to buy up shares of Twilio Inc., amounting to $11.4 million in new purchases Tuesday, based on the stock’s closing price, and matching the dollar amount purchased Monday. The Fintech ETF added 18,099 shares, while the Innovation ETF scooped up 146,801 and the Next Generation Internet ETF added 26,620.

Twilio represents upwards of 0.1% of all three funds.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Deshost
2023-07-19
Deshost
Not surprising, isn't it? Tesla was once the darling of tech stock and it miraculously shot up sky-high due to potential high growth and it's prowess in EV. Today, as it's stock PE is in extremely high ratio and the rise of many worthy competitors in EV industry such as BYD and the likes, to continue buying into Tesla I'd no longer a reliable source of high growth. And worse, with intense competition in the EV arena, Tesla has been shedding RSP of its offering and thus driving down margins and high gains. Cybercoin like Coinbase similarly is no longer the darling of its industry and in fact it's unsafe to buy onto such shares. Letting go and take profits if there's any would be a wiser choice. My take is to focus elsewhere likes the financial banking and consumer discretionary
- 0billionaire:
  With more and more EV competition, profit margin can only drop more and more... It is unavoidable. Tesla must sell more cars to increase its revenue every quarter.
- RandyHall:
  The impossible has happened! Reducing price has actually caused lower margins.
- mizzle:
  Just keep buying on any dips, this is a technology company that will change the way we think about the future.
- snixxx:
  I’m afraid to say this but Tesla hitting over $305 tomorrow after earnings and if it gets fomo and momentum we can see $320.
- fizzik:
  Tesla is overvalued. It will sink when it hits the iceberg and go down like the Titanic!