Amazon's Stock Selloff Enticed Cathie Wood's ETFs to Start Buying

Dow Jones08-07

Cathie Wood kept to her strategy of buying on dips as three of the high-profile investor's exchange-traded funds used the recent tumble in Amazon.com Inc.'s stock to take new positions in the e-commerce and cloud giant.

Amazon's stock $(AMZN)$ had tumbled 13.9% amid a three-day losing streak to close Monday at a six-month low, as growing fears of a slowing economy led to an outsize market selloff.

But while the stock was falling, Cathie Wood's ARK Invest asset-management company and ETF sponsor was buying.

The flagship ARK Innovation ETF ARKK, which had $6.04 billion in assets of as June 30, bought its first 122,498 shares of Amazon on Monday, which would be valued at $19.7 million at Monday's close.

Amazon is currently the 32nd largest of the ETF's 36 holdings, with a 0.38% weighting.

Amazon's stock bounced 1.3% in midday trading Tuesday but had still lost 18.5% since the last record closing price of $200 on July 5. The Ark Innovation ETF was up 1.6% on Tuesday.

And the ARK Fintech Innovation ETF ARKF, with $893.5 million in assets, bought 17,601 Amazon shares, which would be valued at $2.8 million. That new holding made Amazon the ETF's 34th largest, also with a 0.3% weighting.

The ARK Autonomous Technology & Robotics ETF ARKQ, with about $800 million in assets, also started a new stake in Amazon on Monday, buying 16,786 shares valued at $2.7 million. Amazon was currently the fund's 35th largest holding, also with a 0.3% weighting.

Meanwhile, the ARK Net Generation Internet ETF ARKW, with about $1.5 billion in assets, already had a stake in Amazon but increased it by about 36%.

The ETF bought 17,601 Amazon shares on Monday, valued at about $2.8 million. That increased its investment to 66,923 shares, which made the stock its 31st-largest holding, with a 0.88% weighting.

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