Cathie Wood's Strategic Moves: Major Buys and Sells in the Tech Space

On Thursday, Cathie Wood-led Ark Invest made substantial trades, focusing on Palantir Technologies Inc. (PLTR), Tesla Inc. (TSLA), Reddit Inc. (RDDT), and Amazon.com, Inc. (AMZN).

The Palantir Trade

Ark Invest decided to sell shares of Palantir during a volatile day for the company. The stocks initially fell after a downgrade from Jefferies, but later rallied due to a new partnership with Amazon Web Services (AWS) and Anthropic.

Jefferies analyst Brent Thill downgraded Palantir's rating from Hold to Underperform, citing concerns over valuation. Despite this, the company's stock has surged by over 220% this year, including a 30% gain in just one week, thanks to strong quarterly results driven by high demand for AI technologies.

Ark Invest sold 264,513 shares of Palantir on Thursday through its ARK Innovation ETF (ARKK) and the Ark Fintech Innovation ETF (ARKF), with the total value of the transaction reaching $14.8 million based on a closing price of $55.88.

The Tesla Trade

In another significant move, Ark sold 85,019 shares of Tesla Inc. (TSLA). This sale is part of Wood’s ongoing trend of reducing Tesla holdings. The latest transaction was done through ARKK and was valued at approximately $25.24 million.

Wood’s team estimates that Tesla's upcoming driverless ride-hailing service could tap into an impressive $11 trillion market, making it possible to offer lower prices than existing ride-hailing services. The launch is planned for next year in Texas and California, starting with drivers before transitioning to fully autonomous rides as laws permit.

The Reddit Trade

Ark Invest's decision to trade shares in Reddit comes at a time when the company is seeing growth in the social media sector. Reddit recently surpassed Snap Inc. (SNAP) with a market cap of $21.5 billion after its shares jumped 12% on Election Day. This is notable for a platform that has a user base and revenue significantly smaller than Snap's.

As more users turn to Reddit for authentic information, the platform is becoming a competitor to Google's dominance in internet search. This trend was highlighted at a recent conference, where it was noted that journalists increasingly rely on Google to reach Reddit.

On Thursday, Ark sold 62,389 shares of Reddit from its ARK Next Generation Internet ETF (ARKW), a transaction valued at $8.2 million. Reddit’s shares ended the day up by 8.6%, closing at $131.44.

The Amazon.com Trade

In a contrasting move, Ark Invest chose to buy shares of Amazon amid insider selling activity at the e-commerce giant. According to reports, Jeff Bezos, Amazon's executive chair, sold 1.07 million shares at $200.07 each, totaling about $213.8 million, leaving him with still 926.41 million shares.

Other insiders, including director Jonathan Rubinstein and Douglas Herrington, CEO of Worldwide Amazon Stores, have also sold shares worth around $1 million and $696,360, respectively.

Ark purchased 150,675 Amazon shares through its ARKK fund, valued at $31.6 million. Amazon's shares closed Thursday at $210.16, an increase of 1.5%.

Other Key Trades:

• Ark also bought shares of 10X Genomics Inc. (TXG) and sold shares of Moderna Inc. (MRNA).
• The firm acquired shares of Illumina Inc. (ILMN), ABSCI Corp (ABSI), and Guardant Health Inc. (GH), while reducing positions in Unity Software Inc. (U), Sofi Technologies Inc. (SOFI), and Repare Therapeutics Inc. (RPTX).

This strategic reallocation of assets highlights Cathie Wood's approach to navigating the fast-changing tech landscape.

Cathie, Invest, Amazon