On Tuesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its holdings in Bullish, Coinbase, Circle, and Shopify. Ark also sold a large number of Pinterest shares.

The Bullish Trade

Ark Fintech Innovation ETF (BATS:ARKF) acquired 28,186 shares of Bullish, valued at approximately $1.06 million based on the closing price of $37.76.

This move comes as Bullish prepares to announce its third-quarter financial results, with analysts anticipating earnings per share of $0.09, a significant drop from the previous quarter’s $0.93. Despite this, revenue is expected to rise to $72.39 million from $58.63 million, indicating potential growth opportunities for the Peter Thiel-backed cryptocurrency exchange. 

Notably, on Monday, Ark purchased nearly $10.02 million worth of Bullish stock. These purchases come as prices of major cryptocurrencies like Bitcoin and Ethereum crash.

The Coinbase Trade

ARKF and ARK Innovation ETF (BATS:ARKK) collectively purchased 11,620 shares of Coinbase, totaling around $3.04 million at the closing price of $261.79.

This acquisition follows a challenging period for Coinbase as its stock was affected by a crypto-market crash, with Bitcoin and Ethereum experiencing significant declines. With Coinbase's revenue tied to crypto prices and trading volumes, the sudden drop stoked fears of a deeper crypto winter. The downturn also overshadowed Coinbase's recent wins, including a strong third quarter, new JPM Coin partnership and its pre-listing token access launch.

The Circle Trade

Ark’s ARKF and ARKK funds added 40,071 shares of Circle Internet Group, valued at approximately $3.06 million based on the closing price of $76.60.

Analysts have recently turned bullish on the USDC issuer, reflecting optimism about its future performance. Baird analyst David Koning upgraded Circle Internet Group from Neutral to Outperform while keeping a $110 price target. Bernstein analysts say Circle remains fundamentally strong, reaffirming an Outperform rating with a $230 price target. The company reported $740M revenue, $166M adjusted EBITDA, and net income of $214M, up 202% year over year in the third quarter.

The Shopify Trade

Ark’s ARKK fund purchased 33,992 shares of Shopify, amounting to approximately $4.8 million at the closing price of $140.45.

Shopify recently reported a 32% year-over-year revenue increase for the third quarter, surpassing analyst expectations. The company anticipates continued revenue growth in the fourth quarter. Some analysts raised their price targets on Shopify after its earnings report. BMO kept an Outperform rating and lifted its target to $190, while Morgan Stanley maintained Overweight and boosted its target to $192.

The Pinterest Trade

ARKK sold a whopping 203,244 shares of Pinterest, valued at approximately $5.23 million based on the closing price of $25.77 on the same day.

This move comes in the wake of Pinterest’s disappointing third-quarter earnings report, which saw the company’s stock plunge despite a 17% increase in revenue and record user growth.

Pinterest’s third-quarter revenue was in line with estimates at $1.05 billion, but the company missed earnings estimates, reporting adjusted earnings of 38 cents per share against the expected 42 cents. The company’s global monthly active users hit a record 600 million, up 12% year-over-year.

Other Key Trades

• Sold 98,159 shares of BILL Holdings from ARKF.

• Purchased 93,218 shares of Klarna Group in ARKF.

• Acquired 507,289 shares of Recursion Pharmaceuticals in ARKK.