Cathie Wood Invests $19.2M in Block, Sells Shopify Shares

Cathie Wood's ARK funds have acquired $19.2 million worth of Block shares, signaling a buy-the-dip move for the fintech name. The group has also expanded its stakes in biotech and data names, while trimming exposure to Shopify and Guardant Health. This latest accumulation comes at a pullback near $73, offering ARK a lower entry.

Cathie Wood's ARK funds have made a significant move in the fintech sector by acquiring $19.2 million worth of Block shares, signaling a buy-the-dip strategy for the fintech name. The ARKK, ARKW, and ARKF funds purchased 152,980, 69,526, and 39,957 shares of Block, respectively, on August 11, 2022, according to ARK's daily trade disclosures [1].

The Block acquisition comes after the company's recent earnings report, which showed quarterly earnings of 62 cents per share, missing the analyst consensus estimate of 68 cents. Despite this, Block's stock has been gaining attention due to the momentum of its Cash App [2]. The stock has been trading near $73, offering ARK a lower entry point for its latest accumulation.

In addition to its Block purchase, ARK has also expanded its stakes in biotech and data names. The ARKG fund bought 59,880 shares of Personalis (NASDAQ:PSNL) and 23,970 shares of Compass Pathways (NASDAQ:CMPS). The ARKK fund acquired 1,415 shares of CRISPR Therapeutics (NASDAQ:CRSP).

ARK has also been trimming its exposure to Shopify (NASDAQ:SHOP). The ARKK fund sold 69,973 shares of Shopify, amounting to a transaction value of approximately $10.3 million. This move could indicate a strategic decision to capitalize on Shopify's current market position [2].

Cathie Wood's tactical portfolio tilts, including her recent rotation into fintech and selective biotech names while locking profits in others, highlight her strategic approach to investing [1].

References:
[1] https://finance.yahoo.com/news/cathie-wood-snaps-millions-block-175033448.html
[2] https://www.benzinga.com/news/25/08/47048963/cathie-wood-bets-19-million-more-on-jack-dorseys-block-amid-bitcoins-all-time-high-push-dumps-shopify-stock