Popular investor Cathie Wood turned her focus to fintech and cloud names in her latest round of trades on Wednesday, July 30. The biggest buy of the day came in SoFi Technologies (SOFI), with Wood’s flagship ARK Innovation ETF (ARKK) scooping up 328,531 shares worth $7.36 million.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The move comes shortly after SoFi announced a $1.5 billion stock offering, which raised some dilution concerns and put pressure on the stock. After climbing over 6% to close at about $22.40 post Q2 earnings, SoFi shares tumbled roughly 8% following the offering announcement. Despite that, ARK’s purchase points to continued confidence in SoFi’s business model and its ability to grow in areas like digital banking, lending, and financial services.
ARK also bought shares of PagerDuty (PD), a cloud software firm focused on real-time IT alerts and automation. Wood’s funds, the ARKK ETF and the ARK Next Generation Internet ETF (ARKW), picked up a combined 221,558 shares, valued at $3.64 million.
Wall Street’s Take on SoFi and PD
Turning to Wall Street, SoFi Technologies stock carries a Hold rating, with analysts’ average SOFI stock price target of $19.05 implying a possible 12.89% decline. Meanwhile, PagerDuty shares have a Moderate Buy rating, with an average PD stock price target of $19, implying a possible 16.49% upside.
ARK Trims Stakes in Roku and Joby Aviation
On the sell side, Wood trimmed her position in Roku (ROKU) by 67,193 shares, valued at $6.07 million, through the ARKK and the ARKW ETFs. ARK has held Roku for a long time, but the sale may reflect caution due to rising competition in the streaming space and weaker demand in the ad market.
Another major sale was Joby Aviation (JOBY), with ARK selling 57,739 shares worth $975,211 through the ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Space Exploration & Innovation ETF (ARKX). This continues a recent trend of cutting exposure to air taxi stocks, possibly due to ongoing delays in commercialization and the high costs tied to the industry.
Wall Street’s Take on ROKU and Joby Aviation
Turning to Wall Street, Roku stock carries a Strong Buy rating, with analysts’ average ROKU stock price target of $97.24 implying a possible 5.7% upside. Meanwhile, Joby Aviation shares also have a Moderate Buy rating, with an average JOBY stock price target of $10.00, indicating a possible 40.6% downside.
