Cathie Wood Invests in Pinterest, Sells Off Roku and Robinhood Shares

Cathie Wood’s ARK Invest made significant changes to its ETF portfolio on November 5. The move comes after a dramatic drop in Pinterest’s stock price.

Cathie Wood’s Investment in Pinterest

Pinterest (PINS) experienced a 21.8% decline following its earnings report, which fell short of analyst expectations. While the company’s revenues aligned with forecasts, its earnings did not meet market anticipation, leading to a pessimistic outlook.

Taking advantage of this decline, Wood purchased 521,867 shares of Pinterest for approximately $13.44 million through three of her funds.

Other Notable Transactions

In addition to her investment in Pinterest, Wood’s ARK Genomic Revolution ETF (ARKG) acquired 33,823 shares of Guardant Health (GH) for around $3.21 million. This reflects Wood’s continuous commitment to health technology innovations.

Cathie Wood’s Portfolio Selling Activity

On the same day, Wood sold off shares in several portfolio holdings:

• Roku (ROKU): 105,576 shares valued at approximately $11.16 million through the ARK Innovation ETF (ARKK).
• Robinhood Markets (HOOD): 56,095 shares sold for $7.99 million, despite the company exceeding earnings and sales expectations.
• Reddit (RDDT): 11,989 shares sold for $2.35 million via the ARK Next Generation Fintech ETF (ARKW).
• SoFi Technologies (SOFI): 60,808 shares sold for $1.83 million through the ARK Fintech Innovation ETF (ARKF).
• Adaptive Biotechnologies (ADPT): 87,072 shares sold, totaling around $1.53 million.

Trimming Stakes in Other Companies

Additionally, ARK’s ETFs reduced their stakes in Incyte Corp. (INCY) and Ionis Pharmaceuticals (IONS). The ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Space Exploration & Innovation ETF (ARKX) also trimmed their holdings in Teradyne (TER), Rocket Lab (RBLB), and AeroVironment (AVAV).

Strategic Repositioning in Response to Market Conditions

These transactions indicate a strategic shift by Wood, responding to current market fluctuations. The purchase of Pinterest shares suggests confidence in its future despite immediate setbacks.

Conversely, the divestment from Roku, Robinhood, and other fintech and biotech investments may indicate a cautious adjustment to balance growth against market volatility.

Stock Performance Outlook

Using the TipRanks Stock Comparison Tool, both Guardant Health and Pinterest stocks carry a “Strong Buy” rating. Analysts believe Pinterest offers significant upside potential over the next twelve months.