Cathie Wood's ARK Invest Sells $29.2 Million in Crypto, Streaming Stocks, Buys $14.2 Million in Tesla

Cathie Wood, the founder and CEO of ARK Invest, has recently made significant adjustments to her portfolio, selling off shares in several prominent companies involved in the cryptocurrency sector. ARK Invest sold $6.3 million worth of shares in Coinbase, a top US crypto exchange, on July 10th. Additionally, the firm sold $5.6 million worth of shares in trading app giant Robinhood on the same day and $8.5 million worth of shares in streaming platform Roku between July 10th and July 11th. Other notable sales include $1.8 million worth of shares in electric aircraft maker Archer Aviation on July 11th and $8.3 million in digital-payments company Square between July 9th and July 10th.

Amid these sales, ARK Invest made a significant purchase of $14.2 million worth of shares in electric vehicle manufacturer Tesla on July 11th. This move highlights ARK Invest's strategic shift towards companies that are leading the way in innovation and technology. Tesla, with its advancements in electric vehicles and clean energy, aligns well with ARK Invest's investment philosophy. This shift in strategy also reflects Wood's confidence in Tesla's long-term growth potential, especially as the company continues to expand its operations globally.

ARK Invest’s top single holding is Coinbase at $881.4 million, while Tesla is in second at $865.1 million. Ark Invest’s third-largest holding is in Roku at $674.4 million, followed by Robinhood at $636.1 million. The sale of Coinbase and Robinhood shares is notable given the recent backlash and buzz surrounding Robinhood's latest moves. Despite the controversy, Robinhood's stock has seen renewed retail interest, indicating a mixed sentiment among investors. The sale of these shares by ARK Invest suggests a strategic reallocation of funds towards companies that are seen as having greater growth potential in the current market environment.

In a recent interview, Wood predicted a strong bull run for the stock market and a US economic recovery once the Fed cuts rates. She noted that the market has been climbing a "wall of worry," with various controversies and challenges, but has shown resilience. Wood believes that this durability signals a positive outlook for the market, with interest rates likely coming down and a transition from a rolling recession into a recovery. This optimistic view aligns with ARK Invest's strategy of focusing on innovation and technology, positioning the firm to capitalize on long-term growth opportunities.