On Monday, Cathie Wood-led Ark Invest made significant trades, with the most notable being the trades in Coinbase Global Inc, Meta Platforms Inc, Palantir Technologies Inc, Block Inc, Tesla Inc and Amazon.com, Inc.
The Block Inc. Trade
Ark Invest sold a total of 232,063 shares of Block Inc across its Ark Fintech Innovation ETF (ARKF), ARK Innovation ETF (ARKK), and ARK Next Generation Internet ETF (ARKW) funds. This move comes despite the Bitcoin-focused company’s recent positive second-quarter results, which showcased growth in its Cash App and strategic innovations.
CEO Jack Dorsey, announced a new round of layoffs at Tidal, aiming to restructure the company like a startup with a smaller team focused on engineering and design. Block, which acquired Tidal in 2021, has faced challenges competing in the streaming market.
The value of the trade, based on the closing price of $72.69 per share on Monday, is approximately $16.9 million.
The Palantir Trade: Ark Invest’s ARKK and ARKF ETF sold 158,457 shares of Palantir. Given Palantir’s closing price of $41.41 on Monday, the value of this trade amounts to approximately $6.7 million. This move came amid Palantir’s recent third-quarter earnings report, which exceeded expectations.
As reported by Benzinga, Palantir’s third-quarter earnings showcased a revenue of $725.52 million, beating the consensus estimate of $701.13 million. The company’s total revenue was up 30% year-over-year, with U.S. revenue growing 44% year-over-year to $499 million. The U.S. Commercial revenue grew 54% year-over-year, and U.S. Government revenue climbed 40% year-over-year.
Despite these strong financial results, Ark Invest’s decision to offload Palantir shares aligns with their recent trend of reducing holdings in the company.
The Coinbase Global Inc. Trade
Ark Invest’s ARKF fund bought 24,474 shares of Coinbase. The transaction was valued at $4.6 million. On Monday Coinbase shares ended the day 1.85% higher at $186.27.
At the end of October, the company reported third-quarter revenue of $1.21 billion and earnings of $0.28 per share, both missing analyst expectations. Trading volume and transaction revenue declined quarter-over-quarter, while the company saw continued growth in its Base Layer Two network. Coinbase expects increased sales and marketing expenses in Q4 and highlighted the 2024 U.S. election as a potential factor for market volatility.
The Meta Platforms Inc Trade
Ark Invest’s ARK Next Generation Internet ETF ARKW fund bought 6,153 shares of Meta Platforms Inc. This purchase follows Meta’s third-quarter financial results, which beat analyst estimates for both revenue and earnings per share. The value of the trade, based on the closing price of $560.68 per share on Monday, is approximately $3.45 million.
The Tesla Trade: Ark Invest’s ETFs, ARKK and ARKW, sold a total of 9,984 shares of Tesla. Based on Tesla’s closing price of $242.84 on Monday, the value of this trade is approximately $2.42 million. This move comes in the wake of a reported decline in Tesla’s China-made vehicle deliveries in October, which saw a 5.3% drop compared to the same period last year.
This decision to sell Tesla shares is not new. Ark Invest has been gradually reducing its Tesla holdings.
The Amazon Trade: Ark Invest’s ARK Autonomous Technology & Robotics ETF (ARKQ) purchased 5,843 shares of Amazon. With Amazon’s closing price at $195.78 on Monday, the trade’s value stands at approximately $1.14 million. This acquisition follows Amazon’s strong Q3 performance, with net sales up 11% year-over-year, significantly outperforming market expectations.
Other Key Trades:
Ark Invest’s ARKF fund sold shares of Draftkings Inc (DKNG) and bought shares of Shopify Inc (SHOP).
Ark Invest’s ARKG fund bought shares of Illumina Inc (ILMN) and sold shares of Standard BioTools Inc (LAB). The firm purchased shares of Moderna Inc (MRNA) and shares of Nurix Therapeutics Inc (NRIX), as well as those of Senti Biosciences Inc (SNTI).
Ark Invest’s ARKK fund bought shares of Recursion Pharmaceuticals Inc (RXRX). The firm also purchased shares of Twist Bioscience Corp (TWST), and shares of Beam Therapeutics Inc (BEAM).