On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Circle Internet Group Inc. (NYSE:CRCL), Alibaba Group Holding Ltd. (NYSE:BABA), and Tesla Inc. (NASDAQ:TSLA). These trades reflect Ark’s strategic positioning in the market, with notable buys in Circle and Alibaba, and a sell-off in Tesla.
The TSLA Trade:
Ark Invest reduced its holdings in Tesla by selling 70,474 shares through ARK Innovation ETF (BATS:ARKK) and ARK Next Generation Internet ETF (BATS:ARKW). Tesla’s stock closed at $430.60 on Wednesday, marking a 2.05% decline. The trade is valued at approximately $30.3 million.
This move comes amid reports of Tesla’s declining sales in China, where October deliveries fell by 36% year-over-year to 26,000 units. Year-to-date deliveries are down roughly 40,000 vehicles, putting the company at risk of its first annual decline in the market. Including exports, total deliveries from Tesla's Shanghai factory dropped 9.9% to 61,497 vehicles.
Notably, Ark dumped $2.4 million worth of Tesla shares on Monday. The firm also sold 789 shares of the Elon Musk-headed automaker on Tuesday.
The Circle Trade
Ark Invest made a substantial purchase of Circle shares, acquiring 245,830 shares via the ARKK ETF and 70,613 shares through ARKW. Circle’s stock closed at $86.30, down 12.21% on Wednesday, valuing the transaction at approximately $30.5 million.
Despite the USDC (CRYPTO: USDC) issuer’s impressive 202% profit surge in the third quarter, the stock’s decline suggests investor skepticism about its long-term growth potential. Circle’s third-quarter net income reached $214 million, with total revenue and reserve income increasing by 66% to $740 million.
The Alibaba Trade
Ark Invest also increased its stake in Alibaba, purchasing 4,878 shares via ARKK, 364 shares through Ark Fintech Innovation ETF (BATS:ARKF), and 1,396 shares with ARKW. Alibaba’s stock closed at $157.91, down 1.8% on Wednesday, with the trade valued at approximately $1.05 million.
The Jack Ma-founded company continues to attract investors with its focus on artificial intelligence, cloud infrastructure, and instant-commerce delivery. The stock has surged 98% year-to-date, despite potential risks from U.S. restrictions on advanced AI chips.
On Tuesday, Ark Invest had purchased $25.36 million worth of Alibaba shares.
Other Key Trades
- Sold 205,524 shares of Iridium Communications Inc through ARKK, 53,954 shares through AKRQ and 15,897 shares via ARKX.
- Sold 43,940 shares of SoFi Technologies Inc via ARKF.
- Purchased 50,084 shares of Twist Bioscience Corp through ARKK.
- Sold 84,515 shares of Exact Sciences Corp via ARKK.
Benzinga's Edge Stock Rankings indicate Tesla stock has a Value in the 3rd percentile. Here is how the stock is ranked on other metrics.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
