Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made several notable portfolio adjustments on Wednesday, November 5, according to daily fund disclosures. The prominent hedge fund manager capitalized on the 21.8% plunge in Pinterest (PINS) shares, which fell after the company missed Wall Street’s expectations in its recent earnings report.
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Pinterest, a visual discovery and social media platform, reported revenues in line with estimates but missed earnings expectations for Q3. The company also issued a weak outlook, which weighed heavily on its share price. Wood capitalized on this dip and purchased 521,867 shares of Pinterest, totaling $13.44 million, through three funds.
Additionally, the ARK Genomic Revolution ETF (ARKG) acquired 33,823 shares of Guardant Health (GH), for about $3.21 million based on the same day’s closing price. This reflects Wood’s ongoing interest in innovative health technology companies.
Wood’s Portfolio Selling Activity
On the same day, Wood undertook multiple stock sales across various ARK funds. The largest sale was 105,576 shares of TV streaming platform Roku (ROKU) through the ARK Innovation ETF (ARKK), valued at about $11.16 million. The fund also disposed of 56,095 shares of cryptocurrency exchange Robinhood Markets (HOOD) for $7.99 million. Notably, Robinhood surpassed both earnings and sales expectations for the third quarter.
Meanwhile, the ARK Next Generation Fintech ETF (ARKW) sold 11,989 shares of Reddit (RDDT) for $2.35 million.
Furthermore, the ARK Fintech Innovation ETF (ARKF) sold 60,808 shares of SoFi Technologies (SOFI) for $1.83 million. The ARKG fund reduced its holdings in Adaptive Biotechnologies (ADPT) by selling 87,072 shares for about $1.53 million and also trimmed positions in Incyte Corp. (INCY) and Ionis Pharmaceuticals (IONS).
Simultaneously, the ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Space Exploration & Innovation ETF (ARKX) trimmed stakes in Teradyne (TER), Rocket Lab (RBLB), and AeroVironment (AVAV).
Wood’s Strategic Portfolio Shuffle
These transactions suggest Cathie Wood is strategically repositioning her funds amidst current market volatility. By buying into Pinterest after its sharp selloff, ARK signals confidence in the company’s long-term potential despite short-term challenges. At the same time, selling shares of Roku, Robinhood, and other fintech and biotech companies may mean ARK is balancing growth with caution or shifting money to other innovative areas.
Let’s see how some of these stocks perform using the TipRanks Stock Comparison Tool:
Out of the above discussed companies, Guardant Health and Pinterest stocks carry a “Strong Buy” consensus rating, with PINS stock offering a higher upside potential over the next twelve months.
