Cathie Wood's Ark Takes Profits In Rallying Crypto Stocks, Trims Nvidia And This COVID-19 Play Further
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Investment Management has been selling shares of crypto-linked stocks such as Coinbase (COIN), Robinhood (HOOD), and Block (SQ), despite their recent rally alongside cryptocurrency prices. Ark also trimmed its holdings in Nvidia (NVDA) and Zoom (ZM), with Wood citing stretched valuations for Nvidia and selling off nearly all its Nvidia shares. The sales occurred as Ark's flagship ETF, ARKK, and its ARKG ETF continue to adjust their portfolios.
March 26, 2024 | 10:38 am
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NEGATIVE IMPACT
ARKG sold 1,669 Nvidia shares, as part of Ark's broader strategy to trim holdings in companies with stretched valuations.
The sale of Nvidia shares by ARKG, in line with Ark's valuation concerns, could suggest a cautious outlook on NVDA, potentially affecting the ETF's short-term performance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ark Investment Management sold 74,291 shares of Coinbase, despite a rally in crypto stocks.
Selling shares of a rallying stock could indicate a bearish outlook or a strategy to take profits, potentially impacting investor sentiment and COIN's short-term price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Ark sold 1,651,251 shares of Robinhood, a platform that allows cryptocurrency trading.
The sale of a significant number of shares in a rallying market could suggest a strategic portfolio adjustment or a less optimistic view on HOOD's short-term prospects.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ark nearly sold off its entire holding in Nvidia, aligning with Wood's view on its stretched valuation.
The sale of nearly all Nvidia shares by Ark, especially given Wood's comments on valuation, could signal a bearish outlook, affecting NVDA's short-term price movement.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Ark Investment Management reduced its stake in Block, Inc., selling 95,178 shares.
Selling shares during a rally could reflect profit-taking or a strategic shift, potentially influencing SQ's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ark sold 186,809 shares of Zoom, as its price significantly fell from its COVID highs.
The decision to sell a large number of Zoom shares, especially after a significant price drop, could reflect a bearish stance or portfolio rebalancing, impacting ZM's short-term price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
ARKK, Ark's flagship ETF, traded up 1.03% in premarket trading, adjusting its portfolio including crypto-linked stocks.
The positive premarket trading performance and portfolio adjustments, including the sale of crypto-linked stocks, could indicate strategic moves that are positively received by the market, potentially boosting ARKK's short-term price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90