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Cathie Wood Leverages the Rally in Tesla and Nvidia, Picks Up Meta Stock
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Cathie Wood Leverages the Rally in Tesla and Nvidia, Picks Up Meta Stock

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Cathie Wood’s ARK Invest made some lucrative bets on June 12, leveraging the rally in Tesla and Nvidia stocks.

Ace hedge fund manager Cathie Wood is leveraging the recent bull run in shares of electric vehicle (EV) maker Tesla (NASDAQ:TSLA) and chip maker Nvidia (NASDAQ:NVDA), making huge profits for the fund. Cathie’s flagship fund, Ark Innovation ETF (ARKK), sold 324,511 shares of Tesla, valued at roughly $80 million, on June 12. Further, the fund manager sold TSLA stock from two other funds, namely, the ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Next Generation Internet ETF (ARKW). Cathie sold a total of 393,000 shares of TSLA worth nearly $98 million from all three funds combined.

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Tesla shares have been on a roar this year, gaining 131.1% year-to-date, with more than 50% added in the past trading month alone. The news of both Ford (NYSE:F) and General Motors (NYSE:GM) adopting Tesla’s supercharger network across North America has led to bullish sentiment for the stock.  

On the same day, Cathie’s ARK Invest also sold 20,000 shares of Nvidia, totaling approximately $8 million. Nvidia stock has zoomed 175.9% so far this year, following robust quarterly results and strong chip demand. Nvidia also recently joined the trillion-dollar capitalization club after launching the supercomputer that promises to make any person a programmer.

What is ARK Betting on With the Money?

On Monday, ARK Invest also bought 174,848 shares of Meta Platforms (NASDAQ:META) at an estimated value of over $47 million. META stock has gained 117.3% so far in 2023. Cathie also bought Teradyne (NASDAQ:TER) stock worth roughly $3 million, which has increased by 27.7% year-to-date.

What is the Future of the ARKK ETF?

As per TipRanks exclusive ETF forecast methodology, the ARKK ETF has a Hold consensus rating. Of the 404 analyst ratings on ARKK, 49.75% are Buys, 40.35% are Holds, and the remaining 9.90% are Sells. Moreover, the average ARKK stock price target of $48.57 implies 12.2% upside potential from current levels. At the same time, ARKK stock has gained 42.1% so far in 2023.

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