On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Circle, Alibaba Group, and Tesla. These trades reflect Ark’s strategic positioning in the market, with notable buys in Circle and Alibaba, and a sell-off in Tesla.
The TSLA Trade:
Ark Invest reduced its holdings in Tesla by selling 70,474 shares through ARK Innovation ETF and ARK Next Generation Internet ETF. Tesla’s stock closed at $430.60 on Wednesday, marking a 2.05% decline. The trade is valued at approximately $30.3 million.
This move comes amid reports of Tesla’s declining sales in China, where October deliveries fell by 36% year-over-year to 26,000 units. Year-to-date deliveries are down roughly 40,000 vehicles, putting the company at risk of its first annual decline in the market. Including exports, total deliveries from Tesla's Shanghai factory dropped 9.9% to 61,497 vehicles.
Notably, Ark dumped $2.4 million worth of Tesla shares on Monday. The firm also sold 789 shares of the Elon Musk-headed automaker on Tuesday.
The Circle Trade
Ark Invest made a substantial purchase of Circle shares, acquiring 245,830 shares via the ARKK ETF and 70,613 shares through ARKW. Circle’s stock closed at $86.30, down 12.21% on Wednesday, valuing the transaction at approximately $30.5 million.
Despite the USDC issuer’s impressive 202% profit surge in the third quarter, the stock’s decline suggests investor skepticism about its long-term growth potential. Circle’s third-quarter net income reached $214 million, with total revenue and reserve income increasing by 66% to $740 million.
The Alibaba Trade
Ark Invest also increased its stake in Alibaba, purchasing 4,878 shares via ARKK, 364 shares through ARK Fintech Innovation ETF, and 1,396 shares with ARKW. Alibaba’s stock closed at $157.91, down 1.8% on Wednesday, with the trade valued at approximately $1.05 million.
The Jack Ma-founded company continues to attract investors with its focus on artificial intelligence, cloud infrastructure, and instant-commerce delivery. The stock has surged 98% year-to-date, despite potential risks from U.S. restrictions on advanced AI chips.
On Tuesday, Ark Invest had purchased $25.36 million worth of Alibaba shares.
Other Key Trades
Sold 205,524 shares of Iridium Communications Inc through ARKK, 53,954 shares through AKRQ and 15,897 shares via ARKX.
Sold 43,940 shares of SoFi Technologies Inc via ARKF.
Purchased 50,084 shares of Twist Bioscience Corp through ARKK.
Sold 84,515 shares of Exact Sciences Corp via ARKK.
