The Nvidia Trade: A Balance of Gains and Losses
Despite Nvidia Corp’s (NVDA) staggering 58.6% surge this year and a monumental 231.9% leap over the last 12 months, Cathie Wood’s Ark Invest divested nearly $4 million worth of Nvidia shares. The move, executed through the ARK Next Generation Internet ETF (ARKW), involved the sale of 5,067 Nvidia shares. The stock’s value surged 16.4% to $785.38 during Thursday’s regular session, followed by another 1.7% uptick in after-hours trading.
Ark Invest’s Strategic Shifts
While Ark Invest cut ties with Nvidia, it made strategic moves in other key trades within its portfolio. The company bolstered its stake in Roku Inc (ROKU), acquiring 239,868 shares across multiple ETFs. In a contrasting move, Ark trimmed its holdings in Coinbase Global Inc (COIN) by selling 2,828 shares to navigate the volatile cryptocurrency market. Additionally, Ark divested 37,312 shares of Robinhood Markets Inc (HOOD), possibly due to changing market dynamics. The company also significantly reduced exposure to Teladoc Inc (TDOC) by selling shares from various ETFs.
Ark Invest’s decision to sell Nvidia shares might seem counterintuitive given the company’s remarkable financial achievements and the optimistic outlook provided by industry analysts. Nvidia’s superiority in the AI sector was reaffirmed in the fourth quarter when it surpassed revenue expectations and offered solid guidance for the future, signaling sustained growth. Seven analysts seconded this sentiment, emphasizing Nvidia’s unwavering momentum in AI technologies.
See Also: Time To Dive Into Cathie Wood’s Portfolio Stocks? Ark Founder Says They’ve Corrected Tremendously
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