As a rash of disappointing earnings battered the already-struggling technology industry this week, famed stock-picker Cathie Wood, the CEO of New York City’s ARK Invest, cashed in on recent gains of top holding Tesla and splurged on former pandemic darlings that have plummeted in value this year.
According to Ark’s daily transaction reports, three of the firm’s funds, including its flagship Ark Innovation ETF, sold nearly $94 million worth of Tesla shares on Thursday, tacking on to Wednesday sales of $66 million to become Ark’s top-sold holding this week.
The transactions follow a 4% run-up in Tesla prices over the past two days thanks to a record $3.3 billion profit reported on Wednesday, fighting off a broader plunge that pushed the tech-heavy Nasdaq down 4% over the same period.
The high-profile trader also offloaded a massive stake in Spotify, dumping about $74 million in shares on Wednesday and Thursday as the stock plummeted 18% amid a broader rout for streaming stocks, spurred by Netflix’s widely panned earnings report late Tuesday.
Despite selling Spotify, Ark took advantage of another streaming stock’s plunge—buying $61 million worth of Roku as shares tumbled 15% on Wednesday and Thursday to mark the firm’s biggest purchase this week; it also bought shares of Shopify and Zoom worth about $53 million and $34 million, respectively.
Though they skyrocketed as much as 700% during the pandemic, shares of Shopify and Zoom have crashed 65% and 45% this year, leading a decline among technology stocks as the Federal Reserve begins fighting decades-high inflation with interest rate hikes that tend to hurt company earnings, particularly for high-priced stocks.
It’s been similarly tough for Ark, which touts a…
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