Cathie Wood’s ARK Invest made significant changes to its exchange-traded funds (ETFs) on November 5, which highlights the hedge fund manager’s active approach amidst current market fluctuations. Notably, she seized the opportunity presented by the 21.8% drop in Pinterest (PINS) shares, which occurred after the company fell short of Wall Street’s earnings expectations in its latest report.
Pinterest, known for its visual discovery and social media platform, met revenue estimates but did not hit earnings marks for the third quarter, prompting a bleak forecast that heavily impacted its stock price. Taking advantage of this dip, Wood purchased 521,867 shares of Pinterest, amounting to $13.44 million, through three of her funds.
In addition to Pinterest, the ARK Genomic Revolution ETF (ARKG) acquired 33,823 shares of Guardant Health (GH), valued at approximately $3.21 million based on the closing price from that day. This investment reflects Wood’s continued interest in pioneering health technology ventures.
Turning to her selling activity, Wood executed several stock divestments across various ARK funds on the same day. The largest sale involved 105,576 shares of streaming service Roku (ROKU) via the ARK Innovation ETF (ARKK), worth around $11.16 million. Additionally, she sold 56,095 shares of cryptocurrency platform Robinhood Markets (HOOD) for $7.99 million. Interestingly, Robinhood exceeded expectations for both earnings and sales in its third quarter performance.
Other sales included 11,989 shares of Reddit (RDDT) through the ARK Next Generation Fintech ETF (ARKW) for $2.35 million and 60,808 shares of SoFi Technologies (SOFI) for $1.83 million from the ARK Fintech Innovation ETF (ARKF). The ARKG fund also reduced its holdings in Adaptive Biotechnologies (ADPT) by offloading 87,072 shares for about $1.53 million, alongside trimming positions in Incyte Corp. (INCY) and Ionis Pharmaceuticals (IONS).
Moreover, the ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space Exploration & Innovation ETF (ARKX) made adjustments in their stakes with reductions in companies like Teradyne (TER), Rocket Lab (RBLB), and AeroVironment (AVAV).
These recent transactions indicate that Cathie Wood is strategically realigning her funds amid the prevailing market uncertainty. The acquisition of Pinterest shares post-selloff suggests her confidence in the company’s long-term potential, regardless of current obstacles. Conversely, divestments from Roku, Robinhood, and several emerging sectors may reflect a balancing act between growth outlooks and caution, as ARK looks to invest in innovative areas with promising futures.
As the market continues to evolve, it will be intriguing to see how the performance of these stocks unfolds, particularly those like Guardant Health and Pinterest, which currently hold a “Strong Buy” consensus rating, indicating a favorable outlook over the next twelve months. This proactive management strategy highlights the dynamic nature of investing, as Wood navigates through challenging market landscapes with an eye towards future opportunities.