Cathie Wood's Ark Invest pivots from Spotify to Pinterest with multimillion-dollar trades
- Ark Invest sold shares of Spotify totaling approximately $4.8 million while buying Pinterest shares worth about $4.7 million.
- The trades occurred on December 2, 2024, following Spotify's launch of new tools for authors and a mixed earnings report from Pinterest.
- These moves indicate a strategic pivot by Ark Invest towards companies with positive growth prospects.
On December 2, 2024, Cathie Wood's Ark Invest made notable adjustments to its portfolio following market trends and recent company developments. Based in the United States, the firm sold a total of 2,408 shares from its ARKF ETF and a more significant amount of 7,614 shares from the ARKW ETF of Spotify Technology SA, generating approximately $4.8 million based on its closing price of $480.27. This decision came soon after Spotify launched 'Spotify for Authors,' a service designed to assist authors and publishers with distributing audiobooks, showing the company's efforts to enhance its platform. There was also a notable increase in options trading activity, suggesting bullish sentiment among investors regarding Spotify's future. In contrast, Ark Invest also focused on acquiring shares of Pinterest Inc, investing around $4.7 million combined via both ARKF and ARKW ETFs. Specifically, they purchased 37,519 shares through ARKF and a staggering 118,619 shares through ARKW, with Pinterest's shares closing at $30.43 on that trading day. This acquisition followed Pinterest's recently released third-quarter earnings report, which, despite revealing a revenue beat and an earnings per share miss, showcased a year-over-year revenue increase of 18% and an 11% rise in global monthly active users. These developments indicated a potential for growth in the wake of ongoing investments in artificial intelligence aimed at enhancing user engagement. Additionally, Ark Invest made further trades including the purchase of 4,012 shares of Advanced Micro Devices, Inc., while also selling stocks of other biotech entities such as Senti Biosciences Inc and Butterfly Network Inc. These strategic trades reflect Ark Invest's broader investment strategy which includes reallocating resources towards sectors and companies demonstrating immediate growth potential, while distancing from those deemed less favorable in the current market context.