On Monday, Cathie Wood-led Ark Invest made significant trades involving Block Inc. (NYSE:XYZ) and Shopify Inc. (NASDAQ:SHOP).
The Block Trade saw Ark Invest making substantial purchases of the shares across multiple ETFs. The Ark Fintech Innovation ETF (BATS:ARKF) fund acquired 39,957 shares, while the ARK Innovation ETF (BATS:ARKK) added 152,980 shares, and the ARK Next Generation Internet ETF (BATS:ARKW) bought 69,526 shares. The total value of these purchases amounted to approximately $19.2 million, calculated based on Block’s last closing price of $73.03.
This move comes after Block’s recent earnings report, which showed quarterly earnings of 62 cents per share, missing the analyst consensus estimate of 68 cents. Despite this, Block’s stock has been gaining attention due to the momentum of its Cash App, as highlighted by analysts.
Block’s impressive performance in the second quarter has caught the eye of investors. The company reported upbeat earnings, which led to a positive reaction in the stock market. Analysts have been buzzing about the Bitcoin (CRYPTO: BTC)-focused company’s potential as a standout performer in this earnings season, with its financial results exceeding expectations in some areas.
Bitcoin hovered near its July 14 all-time high of $123,321.10 over the past 24 hours, reaching $122,321.10 on Monday. At the time of writing, it traded at $118,999.21 — about 3.3% below its peak, according to Benzinga Pro data.
The Shopify Trade involved Ark Invest selling 69,973 shares of Shopify. through the ARKK fund, amounting to a transaction value of approximately $10.3 million, based on Shopify’s last closing price of $147.50. Shopify’s second-quarter results showed a 31% year-over-year revenue growth to $2.68 billion, surpassing the analyst consensus estimate of $2.55 billion. Despite the positive sales figures, Ark’s decision to sell shares could indicate a strategic move to capitalize on Shopify’s current market position.
Shopify’s strong sales and global momentum have been key factors driving its recent stock performance. The stock has shot up 18.2% over the last 5 days. Even so, Ark has been reducing its exposure to Shopify; Ark sold stock worth $18.4 million last week.
Other Key Trades:
- Personalis Inc. — Bought 59,880 shares via ARKG.
- Compass Pathways PLC — Bought 23,970 shares through ARKG.
- Guardant Health Inc. — Sold 7,200 shares through ARKK.
- CRISPR Therapeutics AG — Bought 1,415 shares through ARKK.
Benzinga's Edge Stock Rankings indicate Jack Dorsey’s Block has a Momentum in the 45th percentile. Here is how the Bitcoin-heavy Strategy compares.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
