Ark funds snagged several tech stocks that have been struggling. Wood maintains that a drop in tech stocks is a buying opportunity.
Investment luminary Cathie Wood, chief executive of Ark Investment Management, bought and sold familiar names, including a Latin American e-commerce company.
Wood snagged several technology stocks that have been struggling. She has said the plunge in tech stocks represents a buying opportunity.
$ARK Innovation ETF(ARKK)$ purchased 2,861 shares of the Buenos Aires e-commerce-platform company $MercadoLibre(MELI)$, valued at $2.6 million. The stock, currently trading around $905, has dropped by almost a third this year. The company focuses on South America, Central America and the U.S.
Ark funds bought 129,419 shares of Canadian e-commerce company $Shopify(SHOP)$, valued at $53.5 million.
Ark funds snapped up 63,039 shares of $Coinbase Global, Inc.(COIN)$, the biggest U.S. cryptocurrency exchange, valued at $7.2 million.
On the selling side, Ark Innovation ETF unloaded 26,131 shares of electric vehicle titan $Tesla Motors(TSLA)$ valued at $22.8 million. In the past, Wood has said her Tesla sales merely represent profit-taking. The company remains Ark Innovation’s biggest holding.
Ark funds dumped 874,926 shares of social-media platform $Twitter(TWTR)$ valued at $44 million. Wood has expressed approval of Tesla Chief Executive Elon Musk’s proposal to purchase the microblogging company, so this sale likely represents profit-sharing too.
And Ark Fintech Innovation sold 195,003 shares of real estate information service $Zillow(Z)$, valued at $7.8 million.
Ark Innovation Performance
Ark Innovation has dropped 53% so far this year, amid the slump in technology stocks. It's down 72% from its February 2021 peak. Wood has brushed off the descent, saying her investment focus is five years.
Indeed, Ark Innovation has outperformed the $S&P 500(.SPX)$ over the past five years. The ETF had an annualized total return of 15.3% during that period, compared with 13.6% for the S&P 500, according to Morningstar.
Investors apparently haven’t given up on Wood. Ark Innovation saw an investment inflow of $790 million year to date, according to Bloomberg.
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