TLDR
- Cathie Wood’s ARK Invest purchased $55.8 million worth of Alphabet shares and $21.4 million in Meta stock
- ARK bought $3.8 million in Coinbase and $7 million in Circle during crypto market dip
- The fund sold $38.6 million in AMD shares and $59 million in Palantir stock
- Wood stated at a conference she does not believe artificial intelligence is in a bubble
- Alphabet stock has gained 70% in the past year and approaches $4 trillion market cap
Cathie Wood’s ARK Invest made major portfolio changes this week with large purchases of tech giants and exits from semiconductor stocks. The investment firm bought 174,293 shares of Alphabet across four separate funds in a single trading session.
Alphabet Inc., GOOGL
The Alphabet purchase totaled approximately $55.8 million based on the stock’s closing price of $320.50. ARK’s buying spree came as Google’s parent company approaches a $4 trillion market valuation for the first time.
Alphabet shares have climbed 70% over the past 12 months. The stock rally has been fueled by the company’s artificial intelligence developments and cloud computing growth.
ARK also increased its position in Meta Platforms by purchasing 33,837 shares through three funds. The Meta transaction was valued at roughly $21.4 million with shares closing at $633.76.
Meta Platforms, Inc., META
The fund added $29.4 million in CoreWeave stock during the same period. All transactions were disclosed through ARK’s daily trading file posted publicly online.
Semiconductor Stocks Get Cut
While ARK added big tech names, the fund reduced exposure to chip makers. ARK sold $38.6 million worth of Advanced Micro Devices stock and exited $59 million in Palantir Technologies shares.
The AMD sale timing coincided with news that Google was negotiating to sell AI chips directly to Meta. This development sent shockwaves through the semiconductor industry and pressured AMD’s stock price.
The Palantir exit appears to be strategic profit-taking. The defense contractor’s stock has surged over multiple years due to artificial intelligence contracts with government agencies and private sector clients.
Crypto Exposure Increases
ARK continued building cryptocurrency exposure despite recent market volatility. The fund purchased $3.8 million in Coinbase Global stock and $7 million in Circle shares.
These crypto-related purchases indicate Wood expects renewed trading activity in digital assets. The buys occurred during a price correction across major cryptocurrencies.
Wood Defends AI Investments
Cathie Wood addressed bubble concerns at a Saudi Arabia conference last month. She firmly stated: “I don’t believe AI is in a bubble.”
Wood explained that enterprise artificial intelligence adoption would require time. She noted that large corporations must prepare their infrastructure before implementing transformative AI technologies.
The latest portfolio moves reflect ARK’s investment strategy of concentrating capital in companies with strong market positions. The fund targets firms with extensive user bases, proprietary data advantages, and direct artificial intelligence infrastructure exposure.
ARK reduced holdings where stock valuations may have outpaced underlying business fundamentals. The shifts show Wood actively managing positions based on competitive dynamics and valuation levels.
The trading activity demonstrates ARK’s conviction in select technology leaders while taking profits on stocks that have experienced extended runs. Google and Meta represent Wood’s preferred plays on AI infrastructure and data monetization.
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Source: https://blockonomi.com/cathie-wood-loads-up-on-google-and-meta-stock-while-dumping-amd-and-palantir/