On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Space Exploration Technologies Corp (NASDAQ:SPCX), NVIDIA Corp (NASDAQ:NVDA), Circle Internet Group, Inc. (NYSE:CRCL), and Palantir Technologies Inc. (NASDAQ:PLTR).
The SpaceX Trade
Ark Invest purchased 181,830 SpaceX shares across multiple ETFs, including ARK Innovation ETF (BATS:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), ARK Next Generation Internet ETF (BATS:ARKW), and ARK Space & Defense Innovation ETF (BATS:ARKX).
The Elon Musk-led company’s stock closed at $108.27, experiencing a significant decline of 13.61% following weak second-quarter financial results. SpaceX’s revenue fell sequentially, raising concerns about its valuation.
Despite this, Ark’s purchase indicates confidence in SpaceX’s long-term potential, with a total investment of approximately $19.7 million.
The Nvidia Trade
Ark Invest also increased its stake in the Jensen Huang-led Nvidia, purchasing 80,415 shares through ARK Blockchain & Fintech Innovation ETF (BATS:ARKF), ARKK, ARKQ, ARKW, and ARKX. Nvidia’s stock rose by 3.43% to close at $219.22.
This move aligns with reports of SpaceX’s commitment to Nvidia GPUs, highlighting the company’s pivotal role in AI expansion. Ark’s investment in Nvidia amounted to approximately $17.6 million, reflecting its bullish stance on Nvidia’s growth prospects.
The Circle Trade
Ark Invest added shares of Circle to its ARKF, ARKK, and ARKW ETFs. Despite Circle’s second-quarter results exceeding expectations, its stock saw a slight decline, closing at $63.28.
A report noted margin pressures and a sequential decline in USDC (CRYPTO: USDC), contributing to the stock’s performance. Ark’s investment in Circle totaled approximately $17.3 million, indicating confidence in its future.
The Palantir Trade
Ark Invest reduced its Palantir holdings by 70,259 shares across ARKF, ARKK, ARKQ, ARKW, and ARKX. Palantir’s stock decreased by 2.6% to close at $158.43. The transaction was valued at $11.1 million. Despite strong second-quarter results and a positive outlook from analysts.
Palantir reported second-quarter revenue of $1.94 billion, up 93% year over year, and adjusted earnings of 41 cents per share, both exceeding analyst expectations, prompting DA Davidson to raise its price target to $200.
Despite the strong results, the stock turned lower after an early gain as investors weighed its stretched valuation and overbought technical indicators, while Michael Burry reiterated his bearish stance and maintained a short position in the company.
Other Key Trades
Sold 467,486 shares of Roblox Corp (RBLX) through ARKK, ARKW and ARKF.
Sold 89,033 shares of Shopify Inc. (SHOP) through ARKK, ARKW and ARKF.
Sold 15,945 shares of Iridium Communications Inc. (IRDM) through ARKX.
Sold 3,211 shares of Deere & Co (DE) through ARKQ.
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