Cathie Wood’s ARK line of exchange-traded funds (ETFs) capitalized on the recent market downturn on March 10, which drove the tech-heavy Nasdaq 100 Index to its lowest level since September.
Known for her early bets on high-growth companies, Ark Innovation ETF (ARKK) became the best-performing ETF of 2020. However, in the face of challenging market conditions, ARKK has struggled to regain that momentum.
By press time on March 12, ARKK was trading at $49.93, posting a modest 0.69% gain in the past 24 hours but still down over 12% year-to-date after a series of sharp declines.
Picks for you
Yet, despite these setbacks, investors appear to be doubling down on Wood’s high-growth strategy, pouring $300 million into ARKK on March 10, the largest single-day inflow in two years.
Seizing the dip, Wood loaded up on shares of Tesla (NASDAQ: TSLA), Palantir Technologies (NYSE: PLTR), and Coinbase Global (NASDAQ: COIN), allocating over $42.5 million to these three names alone on March 10.
Tesla (NASDAQ: TSLA) stock
Tesla has had a rough start to the year, with shares plunging over 15% last week and down more than 40% year-to-date. The stock is under pressure with weak EV sales, disappointing Q4 earnings, and a slowdown in vehicle deliveries all weighing on investor sentiment.
CEO Elon Musk’s political stances have also triggered backlash, further denting Tesla’s appeal. Meanwhile, intensifying competition from both legacy automakers and emerging EV startups continues to pressure Tesla’s stock, erasing billions in market value.
Despite these setbacks, Wood sees long-term value in Tesla. On March 10, ARKK acquired 68,164 Tesla shares, while ARKQ picked up another 11,154 shares, bringing the total purchase to 79,318 shares. At the current price of $229.11 per share, this equates to roughly $18.28 million investment.
Palantir (NYSE: PLTR) stock
Palantir, the AI-powered data analytics firm, has been another key buy for Wood. The stock dropped 10% on March 10, with Ark Invest increasing its position significantly.
The stock suffered a sharp decline following reports that the Department of Defense (DoD) may implement budget cuts as part of a broader government-wide initiative under the Donald Trump administration.
As a key DoD contractor, Palantir saw a sharp decline amid fears that reduced defense spending could significantly impact its future revenue streams.
Despite these concerns, Wood doubled down on her bet, with ARKK purchasing 123,667 shares and ARKF adding another 28,567 shares, bringing the total to 152,234 Palantir shares. At the press time price of $77.96 per share, this equates to nearly $11.87 million investment.
Coinbase (NASDAQ: COIN) stock
Coinbase has also struggled in recent weeks, falling 10% on March 11 and extending its year-to-date losses to 22%. The decline comes as the recent White House Crypto Summit failed to provide any meaningful policy support, leaving investors disappointed.
Adding to the pressure, Coinbase was excluded from the latest S&P 500 index rebalancing, further weighing on its stock.
Despite these headwinds, Wood saw an opportunity, with ARKK purchasing 52,753 shares and ARKF acquiring 11,605 shares, bringing the total purchase to 64,358 Coinbase shares. At $195 per share, this amounts to roughly $12.34 million investment.
Other notable purchases include Advanced Micro Devices (NASDAQ: AMD), Tempus AI (NASDAQ: TEM), Robinhood Markets (NASDAQ: HOOD), Shopify (NYSE: SHOP) and Beam Therapeutics (NASDAQ: BEAM) among others.
Featured image via Shutterstock
