On Monday, Cathie Wood’s Ark Invest made some noteworthy moves in the market. The firm, known for its bold investment strategies, decided to buy shares in both PayPal Holdings Inc (PYPL) and Pinterest Inc (PINS). However, in a surprising turn of events, Ark Invest also chose to sell its entire stake in the ARK 21Shares Bitcoin ETF (ARKB).
Let’s take a closer look at each of these trades:
The PayPal Trade:
Ark Invest’s Fintech Innovation ETF (ARKF) purchased 57,824 shares of PayPal, totaling approximately $4.5 million based on the closing price of $77.67. This move comes at a time when analysts are divided on the company’s future prospects. While the average 12-month price target for PayPal stands at $78.62, there is some uncertainty surrounding the company’s ability to maintain its growth trajectory. In a recent strategic shift, PayPal has begun to penetrate the US point-of-sale (POS) payments market. This includes integrating its debit card with Apple Inc.’s mobile wallet and offering various cashback rewards to attract more users.
The Pinterest Trade:
Ark Invest’s Next Generation Internet ETF (ARKW) acquired 115,211 shares of Pinterest, totaling approximately $3.51 million based on the closing price of $30.46. Pinterest’s second-quarter results, released at the end of July, revealed a strong performance with revenue exceeding expectations. However, the company’s third-quarter guidance fell short of analyst projections, raising concerns about sustained growth throughout the rest of 2024.
The Bitcoin ETF Trade:
On the same day that Bitcoin reached a new peak of $63,500, triggering a significant surge in pre-market activity for several Bitcoin ETFs, Ark Invest’s ARKW sold 44,609 shares of ARK 21Shares Bitcoin ETF. The sale, valued at approximately $2.82 million based on the closing price of $63.25, came amidst volatility in the cryptocurrency market. Bitcoin experienced a slight decline below $63,000 after spiking to $64,600, despite positive comments about cryptocurrency from Democratic presidential candidate Kamala Harris. The past 24 hours saw a total of $124 million in cryptocurrency liquidations, with bearish bets accounting for $67 million. However, Bitcoin’s funding rate remained positive, suggesting bullish trader dominance.
Other Notable Trades:
Ark Invest’s flagship innovation ETF (ARKK) sold 7,747 shares of Palantir Technologies Inc. (PLTR) for a total of $293,998, based on Monday’s closing price of $37.95 per share. ARKF also sold shares of Adyen NV (ADYEN). Meanwhile, ARKG sold shares of Vertex Pharmaceuticals Inc (VRTX) while purchasing shares of Pacific Biosciences of California Inc (PACB). Finally, ARKK sold shares of Roku Inc (ROKU), and ARKQ added shares of 3D Systems Corp (DDD).
Ark Invest’s recent trades highlight the dynamic nature of the investment landscape and the ongoing adjustments being made by the firm in response to market fluctuations and the ever-evolving technological landscape.
