Cathie Wood, the CIO and CEO of Ark Invest, bought nearly 225,000 shares of e-commerce giant Amazon (AMZN) this week for five of her six actively managed ETFs. More specifically, she acquired 224,746 Amazon shares spread across ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Fintech Innovation ETF (ARKF), and ARK Space Exploration & Innovation ETF (ARKX).
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ARKK now holds 155,685 Amazon shares, while ARKW added 22,217. ARKQ and ARKF each acquired around 21,000 shares, while ARKX bought 3,123 shares. The purchases come after AMZN stock corrected nearly 17% from its all-time high of $201.20 per share to its current price of roughly $166. Despite this pullback, shares are still up over 9% on a year-to-date basis.
However, the same can’t be said for the ARK family of ETFs. Indeed, as the image below shows, each of the previously mentioned funds are down anywhere from 8% to almost 25% in 2024. The funds are hoping that Amazon will be one of the answers it needs to turn around their perfomances.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, we can see why ARK acquired AMZN shares. In fact, analysts have a Strong Buy consensus rating on AMZN stock based on 41 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $223.58 per share implies 34.27% upside potential.
