Cathie Wood dumps nearly $60 million in popular growth stocks

5 hours ago 7

On June 18, Cathie Wood's ARK Invest showed disconnected a notable rotation pursuing a superb tally successful 2 of the astir fashionable high-growth stocks.

Investors had been rewarding Robinhood (HOOD) for its cost-cutting program and Roku (ROKU) for its takeover-driven rally, but ARK moved successful the other direction.

Wood took profits successful some stocks aft the catalysts lifted sentiment, turning some into sources of cash.

Those adjustments onshore against a acold much buzzworthy story.

Wood precocious built a large post-IPO presumption successful SpaceX, with ARK buying astir 3.3 cardinal shares that were worthy astir $531 cardinal by the extremity of the stock's archetypal trading day, adding to her estimation among fans and investors arsenic a big-name, high-risk, high-reward banal picker.

On apical of that, the ARK Invest brag didn't conscionable determination to the sidelines.

The steadfast added to Eli Lilly, Coinbase, and different large names linked to caller catalysts, pointing to a large displacement from completed oregon mature rallies toward caller upside stories.

However, the question present beckons whether Wood is taking profits aboriginal oregon getting up of a momentum fade.

Why Cathie Wood sold Robinhood and Roku aft their rallies

Wood's Robinhood and Roku income constituent to a classical lawsuit of profit-taking aft abrupt catalysts.

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Robinhood became 1 of ARK's largest trims of the day.

The steadfast sold disconnected 275,572 shares done the ARK Innovation ETF, worthy $26.65 million. According to Reuters, the merchantability came conscionable aft Robinhood said it would chopped astir 10% of its full-time workforce, oregon astir 290 jobs, arsenic CEO Vlad Tenev pushed the institution to enactment thin and focused.

The cost-cutting offered investors a cleaner borderline story, and the banal jumped arsenic analysts lifted terms targets. For Wood, that rally created an casual model to fastener successful gains.

Roku offered a antithetic benignant of catalyst.

ARK sold 239,267 shares crossed ARKK, ARKW, and ARKF, worthy astir $33.01 million, aft Fox agreed to bargain Roku successful a $22 cardinal woody valued astatine $160 per share.

The woody gave Roku shareholders a defined takeover terms and pushed the banal adjacent to that level. That reduced the upside lawsuit for ARK, turning Roku into a root of currency alternatively than a caller maturation bet.