A day before Christmas, on Tuesday, Cathie Wood-led Ark Invest made significant adjustments to its portfolio, notably selling shares of Tesla Inc. (NASDAQ:TSLA), Palantir Technologies Inc. (NASDAQ:PLTR), and Block Inc. (NYSE:SQ). Notably, Ark has been shedding shares of both Palantir and Tesla this week. Palantir shares have run up a whopping 397% so far this year, while Tesla has appreciated 86% in a similar period.
The Tesla Trade
Ark Invest executed a notable transaction by selling 18,847 shares of Tesla Inc. through its ARK Innovation ETF (NYSE:ARKK). This sale, valued at approximately $8.7 million based on Tesla's closing price of $462.28, comes amid discussions surrounding Tesla's future valuation. Elon Musk recently speculated that Tesla could surpass the value of all transport companies except SpaceX. Despite these ambitious projections, Tesla's stock has been influenced by potential challenges, such as the possible cancellation of the $7,500 EV tax credit in the U.S., which could impact sales.
The Palantir Trade
Ark Invest also reduced its Palantir holdings, selling 42,293 shares from the ARKK fund. This transaction was valued at approximately $3.5 million, given Palantir's closing price of $82.38. Palantir's stock has been on a remarkable upward trajectory, reaching all-time highs. The company's strong performance is largely attributed to its strategic positioning in the AI sector, with shares surging over 380% this year, driven by robust demand for AI solutions.
The Block Trade
In another strategic move, Ark Invest sold 23,962 shares of Block Inc. from the ARKK fund, amounting to about $2.2 million based on the closing price of $91.08. The Bitcoin (CRYPTO: BTC)-focused company's recent financial performance has been mixed, with its third-quarter earnings surpassing expectations but revenues falling short.
Other Key Trades:
- Sold 50,163 shares of Adaptive Biotechnologies Corp from ARKG.Bought 35,598 shares of CRISPR Therapeutics AG via ARKK and ARKG.
- Bought 269,976 shares of GitLab Inc via ARKK.Bought 53,371 shares of 10X Genomics Inc for ARKK and ARKG.
- Analyst Bullish on Shiba Inu, Sees 235% Surge Despite Recent Fall
This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal