On Thursday, Ark Invest parted ways with 133,533 Coinbase shares from its Ark Innovation exchange-traded fund (ARKK) and also disposed of 96,003 Robinhood shares from the ARKW ETF. Following these divestments, Ark Invest acquired Reddit shares for both the ARKW and ARKF ETFs.
Ark Invest Shifts Portfolio, Swaps Coinbase and Robinhood for Newly IPO'd Reddit Shares
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Ark’s Portfolio Pivot: COIN, HOOD Out, RDDT In
This week, Cathie Wood‘s Ark Invest parted with shares of Coinbase (Nasdaq: COIN) and Robinhood (Nasdaq: HOOD), instead choosing to invest in freshly issued shares of Reddit. COIN wrapped up Thursday with a 1.99% increase, while HOOD enjoyed a 2.86% uptick. However, early trading on Friday painted a different picture, with both HOOD and COIN starting off in negative territory.
During the previous day’s gains for both stocks, Ark Invest unloaded $52.27 million in COIN, amounting to 133,533 shares. The firm also shed $1.77 million in HOOD, translating to 96,003 shares. Of the COIN shares sold, 133,533 came from the ARKK portfolio, and an additional 59,125 shares, valued at over $15 million, were sold from the ARKW fund. Subsequently, Ark Invest opted to channel funds into Reddit shares, coinciding with its the social media forum company’s initial public offering (IPO).
Reddit made its highly anticipated entrance to the stock market on March 21, 2024. On its debut, Reddit’s shares dubbed RDDT, listed on the New York Stock Exchange (NYSE), climbed 7.31%, showcasing a strong start. Nonetheless, the momentum seemed to shift by Friday’s opening, with RDDT shares falling 4.58%. Ark Invest secured a stake in Reddit, acquiring 9,982 RDDT shares, valued at upwards of $500,000 as of Thursday.
What do you think about Ark Invest offloading COIN and HOOD and picking up RDDT? Share your thoughts and opinions about this subject in the comments section below.
