Renowned investor Cathie Wood, chief executive of Ark Investment Management, bought shares of a medical imaging equipment producer Wednesday, along with some familiar names.
All valuations below are as of Wednesday’s close.
Ark Genomic Revolution ETF (ARKG) – Get ARK Genomic Revolution ETF Report purchased 227,499 shares of Butterfly Networks (BFLY) – Get Butterfly Network Inc. Class A Report, the medical-imaging-equipment maker, valued at $768,947. The stock has plunged 49% so far this year.
Ark Innovation ETF (ARKK) – Get ARK Innovation ETF Report snagged 240,963 shares of Coinbase Global (COIN) – Get Coinbase Global Inc Report, the country’s biggest cryptocurrency exchange. The stock has cratered 79% year to date.
Clearly Wood still believes in cryptocurrencies, even after their recent slump.
“We think bitcoin has just begun,” Wood said in an April interview on CNBC. Institutions are just starting to catch up to individuals in using bitcoin, she said. And Wood stuck to her January prediction that bitcoin will crack $1 million by 2030.
Block and Shopify Purchases
Getting back to Wednesday’s activity, Ark Innovation snatched 129,448 shares of financial services firm Block (SQ) – Get Block Inc. Class A Report, valued at $8.4 million. The stock has dropped 58% so far this year.
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Ark Innovation bought 268,695 shares of TuSimple (TSP) – Get TuSimple Holdings Inc. Report, an autonomous-truck-driving technology company, valued at $2.1 million. The stock has plummeted 77% so far this year.
Trailing the S&P 500
Meanwhile, as Ark funds have tumbled in recent months, Wood has defended herself by noting that she has a five-year investment horizon.
And the five-year track record of Wood’s flagship Ark Innovation could indeed give investors comfort up to May 9. The fund’s five-year return beat that of the S&P 500 until then. But the five-year annualized return of Ark Innovation totaled 10.81% through July 6, behind the S&P 500’s 11.77% return, according to Morningstar.
Ark Innovation has sunk 52% so far this year, as Wood’s tech companies have hit the skids. And it’s down 71% from its February 2021 peak. Raging inflation and soaring interest rates have helped put the kibosh on tech stocks.
Apparently many of Wood’s investors aren’t too worried about that underperformance. Ark Innovation enjoyed a net inflow of $1.4 billion in the six months through July 5, according to VettaFi, an ETF research firm. To be sure, the fund suffered an outflow of $34.08 million in the last month.
“I think the inflows are happening because our clients have been diversifying away from broad-based benchmarks like the Nasdaq 100,” Wood said. “We are dedicated completely to disruptive innovation. Innovation solves problems.”
BofA Securities maintains Amazon.com at ‘buy’ with a price target of $154.00
Six people in critical condition, one still missing after Paris blast – prosecutor
© Reuters. French firefighters and rescue forces work after several buildings on fire following a gas explosion in the fifth arrondissement of Paris, France, June 21, 2023. REUTERS/Gonzalo Fuentes
PARIS (Reuters) – Six people remained in a critical condition and one person was believed still missing on Thursday, one day after a blast ripped through a street near Paris’ historic Latin Quarter, the city’s public prosecution office said. “These figures may still change,” prosecutor Maylis De Roeck told Reuters in a text message, adding that around 50 people had been injured in the blast, which set buildings ablaze and caused the front of one to collapse onto the street. Of two people initially believed missing, one has been found in hospital and is being taken care of, the prosecutor said, adding: “Searches are ongoing to find the second person.” Authorities have not yet said what caused the explosion, which witnesses said had followed a strong smell of gas at the site. The explosion led to scenes of chaos and destruction in the historic Rue Saint Jacques, which runs from the Notre-Dame de Paris Cathedral to the Sorbonne University, just as people were heading home from work. It also destroyed the facade of a building housing the Paris American Academy design school popular with foreign students. Florence Berthout, mayor of the Paris district where the blast occurred, said 12 students who should have been in the academy’s classrooms at the time had fortunately gone to visit an exhibition with their teacher.
“Otherwise the (death toll) could have been absolutely horrific,” Berthout told BFM TV. She said three children who had been passing by at the time were among the injured, although their lives were not in danger.
4 big analyst cuts: Alcoa & DigitalOcean shares drop on downgrades
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Alcoa, DigitalOcean, Teleflex, and Xcel Energy.InvestingPro subscribers got this news in rapid fire. Never be left in the dust again.Alcoa stock drops on Morgan Stanley downgrade Alcoa (NYSE:) shares fell more than 3% pre-market today after Morgan Stanley downgraded the company to Underweight from Equalweight and cut its price target to $33.00 from $43.00, as reported in real time on InvestingPro.The firm sees a significant decline in consensus estimates, and as negative earnings revisions materialize, it believes the stock will face downward pressure and underperform.The analyst’s estimates for EBITDA in Q2, 2023, and 2024 are substantially lower than the consensus. The stock is currently trading above its historical average. The firm said its downward revisions in earnings estimates and price target are attributed to the company’s high operating leverage to aluminum prices.DigitalOcean stock plunges on downgradePiper Sandler downgraded DigitalOcean (NYSE:) to Underweight from Neutral with a price target of $35.00. As a result, shares plunged more than 5% pre-market today.The company reported its last month, with revenue beating the consensus estimate, while EPS coming in worse than expected. Furthermore, the company provided a strong outlook, which was above the Street estimates.2 more downgradesTeleflex (NYSE:) shares fell more than 3% yesterday after Needham downgraded the company to Hold from Buy, noting that UroLift expectations may still be too high.According to Needham, their checks indicate that urologists are reducing their use of UroLift due to its retreatment rates, reimbursement cuts, and increasing use of competing procedures. This is also supported by their Google Trends data analysis, which indicates decreasing search interest in UroLift.BMO Capital downgraded Xcel Energy (NASDAQ:) to Market Perform from Outperform and cut its price target to $64.00 from $69.00 to reflect the lower-than-expected terms of the company’s regulatory settlement in Colorado.Amid whipsaw markets and a slew of critical headlines, seize on the right timing to protect your profits: Always be the first to know with InvestingPro.Start your free 7-day trial now.
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