Cathie Wood’s ARK line of ETFs capitalized on the recent plunge in stock prices of tech companies and made some significant trades yesterday. Wood’s Ark Invest bought the dip in Tesla (TSLA), Palantir Technologies (PLTR), Coinbase Global (COIN), Advanced Micro Devices (AMD), Tempus AI (TEM), and Robinhood Markets (HOOD).
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At the same time, Wood sold shares of Sofi Technologies (SOFI), Block (XYZ), and UiPath (PATH) among others. Investors are dumping tech stocks amid economic uncertainty, with experts predicting that the U.S. economy could be heading for another recession. Notably, the “Magnificent 7” stocks shed a collective $780 billion in market capitalization in a single day yesterday. Interestingly, Wood also is predicting a “deflationary boom” for the U.S. in the second half of this year, citing the current market turbulence as the final phase of a looming recession.
Let’s see how some of Wood’s stocks perform on TipRanks Stock Comparison Tool based on TipRanks’ different parameters.
Is Tesla a Good Stock to Buy Now?
Wood surely believes it is a good time to buy Tesla stock. The ARK Innovation ETF (ARKK) bought 68,164 TSLA stock yesterday. Additionally, ARK Autonomous Technology & Robotics ETF (ARKQ) bought another 11,154 shares of Tesla. Together, both trades amounted to $17.62 million.
Tesla’s stock price fell the most among the Mag 7 stocks on Monday, ending down 15.4% and wiping-off almost all of the post-election gains. Year-to-date, Tesla stock is down nearly 45%. Tesla’s EV (electric vehicle) sales are taking a beating as competition heats up from domestic Chinese manufacturers. Moreover, consumers are miffed with CEO Elon Musk’s political inclinations and interventions, giving rise to a severe backlash and loss of the Musk brand value.
Is Palantir a Good Stock to Buy Now?
Indeed, Wood remains highly optimistic about the future potential of this big data analytics and AI (artificial intelligence) company. Wood’s ARKK ETF added another 123,667 Palantir stock yesterday. Plus, the ARK Fintech Innovation ETF (ARKF) also bought 28,567 PLTR stock, bringing the total purchase value to $11.63 million.
Palantir also was one of the worst performers among the tech stocks, declining 10.1% on March 10. Yesterday’s stock price drop has done little to harm Palantir’s massive one-year gains of over 201%. Investors are fretting about the potential defense budget cuts and the large insider stock sales at the AI major, dragging down the stock.
Is Coinbase a Good Stock to Buy?
The ARKK ETF acquired 52,573 shares of the crypto platform, amounting to $9.46 million. Plus, the ARKF ETF bought another 11,605 COIN stock for $2.07 million. Wood’s investment philosophy focuses on the disruptive sectors and technologies like cryptocurrencies.
Coinbase was one of the worst performers yesterday amid the crypto rout, making it a bargain hunt for Wood. COIN stock collapsed 17.6% yesterday, following the news of its exclusion from the S&P 500 index (SPX). Bitcoin (BTC-USD) prices also plunged below $80,000 as investors pulled off billions from the crypto markets.