On Thursday, Cathie Wood-led Ark Invest made significant trades involving $Alibaba Group Holding(BABA)$, $Palantir Technologies(BABA)$, and $Cerebras Systems(CBRS)$. These trades reflect Ark’s strategic adjustments amid evolving market conditions.
The Palantir Trade
Ark Invest made notable purchases of Palantir shares across ARK Blockchain & Fintech Innovation ETF, ARK Innovation ETF, and ARK Next Generation Internet ETF. The firm acquired 30,528 shares in total, valued at approximately $3.3 million, based on the closing price of $107.27.
Despite the Alex Karp-led company’s impressive 85% revenue growth year-over-year, the stock has experienced pressure due to a broader tech selloff and competitive threats from Anthropic’s AI solutions.
Michael Burry’s comments on Palantir’s market position have further influenced investor sentiment. Burry highlighted Palantir’s continued decline, noting the stock had reached a new low after a low-volume top and pointing to weak trading volume as evidence of its prolonged downtrend.
The Cerebras Trade
Ark Invest also increased its stake in Cerebras through its ARKK and ARKW ETFs, purchasing a total of 111,989 shares. This investment is valued at approximately $18.9 million, considering the closing price of $168.52.
Cerebras recently reported better-than-expected quarterly revenue, although its stock has faced challenges following its first earnings report.
The Alibaba Trade
Ark Invest reduced its holdings in Alibaba by selling 176,004 shares across its ARKF, ARKK, and ARKW ETFs. This sale is valued at around $16.7 million, based on the closing price of $95.07.
Alibaba has been under scrutiny following accusations from Anthropic regarding AI model distillation practices. Additionally, Chairman Joe Tsai’s ambitious AI strategy has raised concerns among investors, contributing to the stock’s recent decline.
Other Key Trades
Coinbase Global: Ark Invest bought 9,014 shares across ARKF, ARKK, and ARKW.
Roku: Sold 130,666 shares across ARKK and ARKW.
Twist Bioscience: Sold 37,555 shares in ARKG.
Recursion Pharmaceuticals: Purchased 891,473 shares across ARKG and ARKK.