Cathie Wood's Ark Invest Unfazed By Tesla's Big Q1 Sales Miss, Hoards $39M Of EV Giant's Stock Tuesday — Nvidia Offloading Continues
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Invest purchased $39M of Tesla stock following a nearly 5% drop due to a Q1 sales miss. Ark Invest's ETFs ARKK, ARKQ, and ARKW bought shares of Tesla, with ARKK holding $677.40 million worth of Tesla shares. Meanwhile, Ark sold Nvidia shares but paused selling Coinbase and Robinhood stocks amid a cryptocurrency sell-off. Tesla's Q1 vehicle deliveries fell short of expectations, marking the first year-over-year decline since Q2 2020, attributed to production and factory issues.
April 03, 2024 | 2:35 am
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NEGATIVE IMPACT
ARKK, holding a significant amount of Tesla shares, saw a 2.97% drop, influenced by Tesla's Q1 sales miss and market reactions.
ARKK's performance is closely tied to Tesla, and the Q1 sales miss led to a notable drop in the ETF's value, reflecting the direct impact of Tesla's performance on ARKK.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Ark Invest continued to sell Nvidia shares, offloading 1,959 shares, likely due to portfolio adjustments.
Ark's decision to sell Nvidia shares could indicate a bearish outlook or a strategic portfolio realignment, potentially impacting Nvidia's stock negatively in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
ARKQ sold Nvidia shares and bought Tesla stock, indicating a strategic shift in its investment focus.
ARKQ's sale of Nvidia shares and purchase of Tesla stock suggest a reallocation of resources, potentially affecting the ETF's performance based on Tesla's future market behavior.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
NEUTRAL IMPACT
ARKW's purchase of Tesla shares reflects confidence in the EV company despite its recent Q1 sales miss.
By increasing its Tesla holdings, ARKW demonstrates a bullish outlook on Tesla, potentially influencing investor sentiment and the ETF's performance.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
NEUTRAL IMPACT
Ark Invest paused selling Coinbase stocks amid a cryptocurrency market sell-off, indicating a wait-and-see approach.
The pause in selling Coinbase shares during a cryptocurrency sell-off suggests Ark may believe in the stock's resilience or potential recovery, impacting investor sentiment.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Ark Invest also halted sales of Robinhood stocks during the cryptocurrency market downturn, showing a cautious stance.
By not selling Robinhood shares amid a crypto sell-off, Ark's strategy may reflect a belief in the stock's potential stability or growth, influencing investor perspective.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Tesla's stock fell nearly 5% after reporting a Q1 sales miss, with Ark Invest purchasing additional shares worth $39M.
Despite the sales miss and subsequent stock price drop, Ark Invest's significant purchase could signal confidence in Tesla's long-term value, potentially stabilizing the stock in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90