On Thursday, Cathie Wood-led Ark Invest purchased over $40 million worth of shares in Pinterest Inc (NYSE:PINS), despite the social media platform’s recent fourth-quarter earnings miss.
The Pinterest Trade
The firm purchased 989,792 shares of Pinterest, worth $40.3 million, on Thursday through ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (NYSE:ARKW), and Ark Fintech Innovation ETF (NYSE:ARKF). On the day, Pinterest shares closed 0.27% lower at $40.72. In the after-hours trading, the stock declined another 9.23%.
Ark Invest’s acquisition of Pinterest shares comes at a time when the company reported a fourth-quarter revenue miss, yet showed an 11% increase in monthly active users. This move by Ark Invest may signal a strong belief in Pinterest’s long-term potential, especially considering the recent partnership with Amazon, which analysts believe could significantly boost its revenue streams.
The Shopify Trade
Ark Invest sold 108,457 Shopify shares via ARKK, ARKW, and ARKF. The transaction was valued at $9.5 million. On Thursday, Shopify shares closed at $87.87.
Ark Invest’s decision to sell shares of Shopify Inc (NYSE:SHOP) comes after a period of volatility for the company, as detailed in a recent Benzinga report. The shares experienced a sell-off in December and January due to broader tech sector losses linked to rising Treasury yields, despite a previous 50% increase since October. Yet, in early January, Shopify shares surged, surpassing December highs and reaching a new 52-week peak. During this period, analysts adjusted Shopify’s price targets, spanning $65 to $100.
The Nvidia Trade
On Thursday, Ark sold another 2009 shares of Nvidia worth $1.4 million. The transactions were made through ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), ARK Genomic Revolution ETF (BATS:ARKG), and Ark Fintech Innovation ETF (NYSE:ARKF). Nvidia shares closed 0.65% lower at $696.41.
Similarly, the sale of Nvidia Corp (NASDAQ:NVDA) shares by Ark Invest amidst the AI boom, as reported by Benzinga. Ark Invest sold 4053 Nvidia shares across multiple ETFs on Wednesday, valued at $2.84 million, signaling a notable shift in their investment strategy despite Nvidia’s recent surge of 41.55% since the beginning of 2024 and a 215.69% increase over 12 months. Analysts, like those at Morgan Stanley, foresee Nvidia’s substantial potential in AI, yet concerns over its high valuation persist, with Ark Invest’s move possibly reflecting a cautious approach towards Nvidia’s market position.
See Also: Cathie Wood’s Ark Invest Lost More Than $14B In Wealth Over Past Decade, Report
Other Key Trades:
Twilio Inc (NYSE:TWLO) saw a reduction in Ark’s holdings, aligning with strategic portfolio adjustments. Pacific Biosciences of Calif (NASDAQ:PACB) received a significant investment, highlighting Ark’s focus on genomic technologies. Twist Bioscience Corp (NASDAQ:TWST) was another key investment, underscoring the fund’s commitment to biotech innovation. Beam Therapeutics Inc (NASDAQ:BEAM) saw increased shares, reflecting Ark’s interest in gene editing technologies.
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