Cathie Wood's ARK Invest Makes $69M Bet on Exact Sciences, Sells Palantir, Roblox, and DraftKings

Cathie Wood's ARK Invest ETFs made a $69 million bet on Exact Sciences, buying 1.4 million shares on August 7. Wood also acquired shares of Airbnb and CRISPR Therapeutics, while selling shares of Guardant Health, DraftKings, and Palantir Technologies. EXAS stock plunged 8% on Wednesday, but Wood appears to have leveraged the dip, anticipating a deal with competitor Freenome to access their blood-based CRC test. The stock has a Strong Buy consensus rating on TipRanks, with a price target of $65.75 and 52.3% upside potential.

ARK Invest, led by Cathie Wood, made significant moves in the financial markets on August 7, 2023. The ETFs executed trades totaling approximately $69 million, involving Exact Sciences Corp (EXAS), Airbnb Inc (ABNB), CRISPR Therapeutics AG (CRSP), and several other companies. These trades reflect Ark’s strategic adjustments in response to recent market developments and company-specific news.

Exact Sciences Corp (EXAS)

ARK Invest bought 1.4 million shares of Exact Sciences Corp on August 7, 2023, investing approximately $69 million [1]. The purchase comes as EXAS stock plunged 8% on Wednesday, driven by market fluctuations and potential competition from Freenome. Freenome recently entered an exclusive license agreement with Exact Sciences to commercialize its blood-based colorectal cancer (CRC) screening test in the US. Under the agreement, Exact Sciences will pay Freenome an upfront cash payment of $75 million, with potential additional payments up to $700 million contingent on specific milestones related to CRC screening tests [2].

Airbnb Inc (ABNB)

ARK Invest also acquired shares of Airbnb Inc. The ETFs collectively bought 179,197 shares of ABNB, valued at approximately $21.5 million. This move comes after Airbnb reported its second-quarter earnings, which included a 13% year-over-year revenue increase to $3.1 billion. Despite exceeding analyst expectations, Airbnb’s shares fell by 8.02% to close at $120.03 due to concerns about slowing growth in the latter half of the year [3].

CRISPR Therapeutics AG (CRSP)

ARK Invest bought shares of CRISPR Therapeutics AG, a biotechnology company focused on developing gene-editing therapies. The details of this trade are not specified in the provided materials.

Selling Shares

ARK Invest sold shares of several companies, including Guardant Health Inc (GH), DraftKings Inc (DKNG), and Palantir Technologies Inc (PLTR). The ETFs sold a total of 1,419,766 shares of GH, 155,217 shares of DKNG, and 38,880 shares of PLTR, valued at approximately $7.01 million, $7.1 million, and $7.01 million, respectively [3].

Market Sentiment and Analysis

ARK Invest’s strategic adjustments reflect its optimism about the potential of AI-driven growth and the biotechnology sector. The Strong Buy consensus rating on TipRanks for EXAS stock, with a price target of $65.75 and 52.3% upside potential, indicates market sentiment is favorable for the company [1].

Conclusion

Cathie Wood's ARK Invest ETFs continue to make strategic moves in the financial markets, leveraging market fluctuations to acquire promising companies and adjust portfolios in response to recent developments. The ETFs' focus on biotechnology, AI, and innovative technologies underscores Ark’s long-term investment strategy.

References

[1] https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/08/46940173/cathie-wood-scoops-up-38-million-worth-of-amd-stock-as-it-slips-dumps-palantir-and-shopify-at-highs
[2] https://finance.yahoo.com/news/exact-sciences-acquire-us-rights-091716831.html
[3] https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/08/46987944/cathie-wood-buys-the-airbnb-dip-with-21-5-million-stock-purchase-dumps-palantir-draftkings-and-robinhood-shares