Cathie Wood's Ark Invest Bucks Trend, Trims 2 Major Chip Stocks Ahead Of Q4 Results: Profit-Taking Or Portfolio Shift?
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Investment Management sold shares of Nvidia (NVDA) and AMD (AMD) from its Ark Next Generation Internet ETF (ARKW) ahead of Q4 results. The sales generated approximately $2.39 million from NVDA and $4.11 million from AMD. Analysts remain optimistic, with KeyBanc maintaining Overweight ratings and high price targets for both stocks. Ark's sales may indicate profit-taking or a shift towards undervalued AI stocks or its own ARKB ETF.
January 23, 2024 | 11:35 am
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NEUTRAL IMPACT
Ark Investment Management reduced its AMD holdings by 24,458 shares, totaling approximately $4.11 million. The sale follows a recent high for AMD's stock price.
Ark's sale of AMD shares could be seen as profit-taking after a recent peak in stock price, but analyst optimism may counter short term negative price impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Ark Next Generation Internet ETF (ARKW) sold shares of NVDA and AMD. The move could reflect a strategic portfolio shift or profit-taking by Ark Invest.
The ETF's sale of these chip stocks may indicate a strategic shift or reallocation of funds, which could be neutral to slightly negative in the short term as it may suggest a lack of confidence in these positions.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Ark Investment Management sold 4,012 shares of Nvidia, generating approximately $2.39 million. Despite the sale, analysts remain optimistic with a high price target suggesting potential upside.
While the sale by Ark could suggest a bearish outlook, the strong analyst ratings and price targets could mitigate any negative impact on NVDA's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Ark may be reallocating funds from the sale of NVDA and AMD shares to its spot Bitcoin ETF, ARKB, which was recently approved for trading.
If Ark is redirecting funds to ARKB, this could indicate a bullish outlook for the ETF, especially following its recent approval for trading.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60