On Tuesday, the Cathie Wood-led Ark Invest made some significant trades. The most prominent among them were the increased stakes in Palantir Technologies Inc (NYSE:PLTR) and the reduced holdings in Coinbase Global Inc (NASDAQ:COIN).
The PLTR Trade
Ark Invest's ETFs Ark Fintech Innovation ETF (NYSE:ARKF), ARK Innovation ETF (NYSE:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), and ARK Space Exploration & Innovation ETF (BATS:ARKX) purchased a combined total of 1,35,3667 shares of Palantir. This move came despite the company's shares trading lower following the release of its first-quarter financial results and softer guidance. The value of this trade, based on the closing price of $21.40, is approximately $29 million.
According to a previous report, Palantir's first-quarter revenue increased 21% year-over-year to $634 million, beating the consensus estimate. The company also reported adjusted earnings of 8 cents per share, in line with analyst estimates. Despite exceeding revenue expectations, the shares tumbled as investors reacted negatively to the company's light guidance for the second quarter and the full year.
The COIN Trade
Ark Invest's ARKF, ARKK, and ARK Next Generation Internet ETF (NYSE:ARKW) sold a total of 70,616 shares of Coinbase. This decision was made despite Coinbase's recent first-quarter earnings report, which highlighted a revenue beat and an all-time high in institutional trading volume. The value of this trade, based on the closing price of $214.34, is approximately $15.1 million.
Coinbase reported total revenue of $1.64 billion, beating the Street consensus estimate of $1.34 billion. The company also reported a GAAP EPS of $4.40.
Ark's transaction on Coinbase occurred during a period of subdued cryptocurrency values, with Bitcoin (CRYPTO: BTC) observed to be trading 1.4% lower over a 24-hour period, resting at $62,631.01 at the time of writing. The prevailing pessimism persists following regulatory action against Robinhood Markets Inc., a competitor of Coinbase, as it received a Wells Notice from the Securities and Exchange Commission.
Other Key Trades:
Ark Invest's ARKF and ARKW ETFs sold a total of shares of Draftkings Inc (NASDAQ:DKNG).
ARKK sold shares of Twist Bioscience Corp (NASDAQ:TWST). ARKQ bought the stock of Rocket Lab USA Inc (NASDAQ:RKLB). ARKW also bought shares of Datadog Inc (NASDAQ:DDOG).
Photo via WEF on Flickr