Cathie Wood’s Ark Invest, a prominent investment firm, made notable trades on Monday, acquiring shares of both Alphabet Inc. (GOOG) and Robinhood Markets Inc. (HOOD). These moves highlight the firm’s investment strategies in the technology sector.
Ark Invest purchased 14,686 Class C shares of Alphabet, the parent company of Google, through its ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space Exploration & Innovation ETF (ARKX). This trade, valued at $2.4 million, was executed at the closing price of $163.95 for GOOG shares. Alphabet has recently been under the spotlight due to its relatively low valuation compared to other tech giants. The stock has been trading at its lowest valuation within the “Magnificent Seven,” a group of leading tech companies including Tesla Inc., Nvidia Corp., Microsoft Corp., Meta Platforms Inc., Amazon.com Inc., and Apple Inc. This dip in valuation is attributed to an ongoing antitrust lawsuit, which has resulted in a 13.24% decline in Alphabet’s stock price over the past month.
Ark Invest also acquired 45,702 shares of Robinhood Markets Inc. (HOOD) through its ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF). This trade, worth $847,315, was made at the closing price of $18.54 for HOOD shares. Robinhood Markets recently reported strong second-quarter financial results, with revenue rising by 40% year-over-year. The company’s revenue exceeded analysts’ expectations, indicating a robust performance. Notably, Wood had already purchased a substantial chunk of Robinhood shares earlier in August following a post-earnings dip in the platform popular among retail traders. Interestingly, this earlier trade occurred at a time when Alphabet significantly reduced its stake in Robinhood.
In addition to these purchases, Ark Invest also sold shares of Unity Software Inc. (U) and Nextdoor Holdings Inc. (KIND). These divestments suggest the firm is adjusting its portfolio based on its investment outlook.
