On Tuesday, Cathie Wood-led Ark Invest made significant trades. These trades were executed across multiple Ark ETFs and focused on tech as well as cryptocurrency-related companies.
The Meta Platforms Trade
Ark Invest bought shares of Meta Platforms Inc (NASDAQ:META) across ARK Blockchain And Fintech Innovation ETF (BATS:ARKF), ARK Innovation ETF (BATS:ARKK), and ARK Next Generation Internet ETF (BATS:ARKW). The purchases totaled 33,837 shares, valued at approximately $21.5 million, based on Meta’s closing price of $636.22.
This move comes amid calls for an investigation into Meta’s alleged profits from fraudulent ads, as reported by U.S. Senators. Despite these controversies, Meta’s stock rose by 3.78% on Tuesday, driven by speculation of a potential collaboration with Google on AI chips.
The Alphabet Trade
Ark Invest acquired a substantial 174,293 shares of Alphabet Inc. (NASDAQ:GOOG) through its ARKK, ARKW, ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and ARK Space And Defense Innovation ETF (BATS:ARKX). The total investment amounted to approximately $56.4 million, with Alphabet’s Class C shares closing at $323.64.
Alphabet shares rose sharply as the company approached a $4 trillion valuation, boosted by Meta's potential use of Google AI chips and momentum around its Gemini AI model. Despite Alphabet's gains, AI-focused ETFs fell, dragged down by Nvidia, the sector's usual driver.
The Coreweave Trade
Ark Invest’s purchase of 396,198 shares of CoreWeave Inc (NASDAQ:CRWV) via ARKK and ARKW funds, valued at around $28.2 million at the closing price of $71.29.
CoreWeave’s stock declined by 3.14% amid concerns over its reliance on Nvidia GPUs, as Meta explores alternatives with Google’s TPUs. This strategic acquisition by Ark suggests confidence in CoreWeave’s long-term potential despite current market challenges.
The AMD Trade
Ark Invest sold a total of 106,651 shares of Advanced Micro Devices Inc (NASDAQ:AMD) across ARKF, ARKK, and ARKW funds, valued at approximately $21.98 million, based on AMD’s closing price of $206.13.
AMD’s shares fell by 4.15%, influenced by reports of Meta’s potential shift to Google’s AI chips, challenging Nvidia’s dominance in the semiconductor space.
The Palantir Trade
Ark Invest sold 354,955 shares of Palantir Technologies Inc (NASDAQ:PLTR) through ARKK, ARKQ, ARKW and ARKX. The sale, valued at approximately $58.05 million based on the closing price of $163.55, comes as Palantir’s stock rebounds from a recent pullback.
The tech sector’s rally, driven by falling yields and optimistic Federal Reserve rate-cut expectations, has helped boost Palantir’s shares. Despite insider selling and concerns over an AI bubble, Palantir’s strong third-quarter results and positive guidance have maintained investor interest.
The Block Trade
Ark Invest made a significant purchase of 212,538 shares of Block Inc (NYSE:XYZ) through ARKK and ARKF, valued at approximately $13.5 million at the closing price of $63.69.
Block’s was bolstered by positive guidance at its recent Investor Day event. The company is focusing on its Cash App, AI initiatives, and share buybacks, positioning itself for future growth.
The ARK 21Shares Bitcoin ETF Trade
The ARKF and ARKW funds acquired a total of 96,200 shares of ARK 21Shares Bitcoin ETF (BTS: ARKB), valued at approximately $2.8 million at the closing price of $29.01.
This purchase aligns with the dip in Bitcoin (CRYPTO: BTC) prices and reflects its confidence in the long-term potential of digital assets. On Monday, Ark had purchased $1.08 million worth of ARKB shares. Bitcoin prices have collapsed over 23% over the last 30 days. On a year-to-date basis the apex cryptocurrency is down over 6%.
The Circle Trade
Ark Invest’s ARKK fund purchased 108,450 shares of Circle Internet Group Inc (NYSE:CRCL), valued at approximately $7.60 million at the closing price of $70.11.
This acquisition is part of Ark’s broader strategy to invest in emerging technologies and digital finance, as the USDC (CRYPTO: USDC) issuer continues to expand its influence in the crypto space.
Analysts upgraded or reaffirmed bullish ratings on Circle Internet Group, with Baird raising it to Outperform and Bernstein maintaining an Outperform rating. In the third quarter, Circle reported $740 million in revenue, $166 million in adjusted EBITDA, and $214 million in net income, a 202% increase year-over-year.
Ark has been on a purchasing spree of Circle stock and bought $15.06 million worth of shares just last week.
Other Key Trades:
- Sold 397,713 shares of GitLab Inc (GTLB) via ARKK and ARKW
- Sold 216,331 shares of Exact Sciences Corp (EXAS) across ARKG and ARKK.
- Purchased 15,197 shares of Coinbase Global Inc. (COIN) through ARKK.
Benzinga Edge Stock Rankings indicate that Alphabet Class C stock has Quality in the 88th percentile. Here is how the stock ranks against other Magnificent 7 names.
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Photo Courtesy: PJ McDonnell on Shutterstock.com
This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
