Cathie Wood’s Ark Invest bought more than $45 million of Robinhood stock as shares slumped in their trading debut

Robinhood Vlad standing at Nasdaq time square billboard
  • Cathie Wood’s flagship Ark Innovation ETF bought Robinhood as the trading app fell in its first day of public trading.
  • Wood scooped up nearly nearly 1.3 million shares of Robinhood worth over $45 million.
  • Fund filings show the ETF now holds roughly 3.6 million shares of Robinhood worth $126 million.
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Cathie Wood’s Ark Invest scooped up shares of Robinhood as the brokerage app fell on its first day of trading Thursday.

Wood’s flagship Ark Innovation exchange traded fund purchased nearly 1.3 million shares of Robinhood worth over $45 million based on Thursday’s closing price of $34.82. Fund filings show the Ark Innovation ETF now holds roughly 3.6 million shares of Robinhood worth $126 million, indicating Ark also bought the company before it made its public debut.

The mobile brokerage app priced its IPO Wednesday night at $38 per share, representing the bottom end of its targeted range of $38 to $42 per share. It ended its first day of trading down 8.37%.

Shares of Robinhood extended losses in premarket trading Friday, falling by more than 3% to around $33.70.

Wood’s latest activity comes as she rapidly sheds Ark’s positions in Chinese technology stocks amid an ongoing regulatory crackdown in Beijing.

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Cathie Wood’s Ark Invest is rapidly shedding Chinese stocks as Beijing’s regulatory crackdown expands

Cathie Wood
Cathie Wood is the CEO and chief investment officer of ARK Invest, which runs three of the highest-returning stock ETFs of the last three years.


Cathie Wood’s Ark Invest is rapidly shedding its positions in Chinese technology stocks amid an ongoing regulatory crackdown by Beijing.

On Friday, Ark Invest sold the last remaining shares of its stake in Tencent, and is quickly shedding KE Holdings, an online property website based in China, and JD.com, according to Ark’s daily trading updates. KE Holdings fell as much as 26% on Monday.

The latest regulatory crackdown in China hit education and tutoring companies on Friday, with companies like TAL Education, Gaotu Techedu, and others plunging more than 50%. China said it is banning tutoring on holidays and weekends for students to lessen the burden of schoolwork, which makes up a big chunk of the tutoring companies business.

The China’s increased scrutiny on certain businesses began late last year following the abrupt cancellation of Ant Group’s IPO. A clampdown on the fintech giant then spread to Alibaba and Tencent earlier this year, with both getting hit with anti-monopoly measures and fines.

Since then, ride-hailing giant Didi, which went public last month, has been hit with regulatory actions by China amid data-security concerns. That crackdown on Didi led to TikTok parent ByteDance shelving its planned IPO.

All in all, the uncertain regulatory environment for Chinese stocks has led to an investor exodus from popular names like Tencent and Alibaba, which were both down as much as 10% and 7% in Monday trades, respectively.

In a webinar with investors earlier this month, Wood said a “valuation reset” among Chinese stocks is occurring, and that their valuations could remain depressed for some time.

“From a valuation point of view, these stocks have come down and again from a valuation point of view, probably will remain down,” Wood said.

On the flip side, Wedbush analyst Dan Ives thinks losses for Chinese tech stocks could lead to gains in US mega-cap tech stocks, as investors rotate out of once popular names like Alibaba and Tencent in favor of Amazon, Apple, Microsoft, and Google.

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Bitcoin surges 15% to top $38,000, boosted by comments from influential investors and chatter about Amazon getting into crypto

Bitcoin crypto currency physical banknote and coin imitations.
  • Bitcoin rose 15% to its strongest level since mid-June on Monday.
  • Positive remarks by Elon Musk, Jack Dorsey, and Cathie Wood at “The B Word” event helped drive the gains.
  • Chatter about Amazon possibly accepting bitcoin payments by the end of 2021 are seen as adding further support.
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Bitcoin leapt 15% on Monday to rise above $38,000 for the first time in about six weeks, after remarks from influential commentators and a report that Amazon is considering accepting payments in the cryptocurrency helped restore bullish investor sentiment.

The coin was trading at around $38,750 as of 3:15 a.m. ET, representing a 33% gain so far this year. It had earlier hit a 24-hour high of about $39,544, its highest level since mid-June.

After being stuck in a descending slope for three months, bitcoin broke out at the top end of recent levels following positive comments from leading CEOs Elon Musk, Jack Dorsey, and Cathie Wood at “The B Word” event last week.

Tesla CEO Musk said the electric-vehicle maker would be open to accepting bitcoin as payment again, as long as the mining community strives to move towards efficient energy use. Twitter boss Dorsey said that bitcoin is a big part of the social-media platform’s future, and that he’s working to make an accessible wallet for it via payments company Square.

A report from London’s City A.M. about Amazon possibly accepting bitcoin payments by the end of 2021 also helped drive the digital currency’s move higher. The roll-out may not take long, since the online retail giant has been working on these plans since 2019, a source told the newspaper, it reported.

Amazon is also looking to hire someone to lead its digital currency and blockchain initiatives.

The re-emergence of institutional experts, along with Goldman Sachs’ recent services for institutional trades in bitcoin, helped drive the weekend rally for bitcoin, Jeffrey Halley, a senior market analyst at OANDA, said in a note on Monday.

“I still believe the entire sector and un-stable coins are complete nonsense that will lose small investors billions, but the people have spoken, and the digital Dutch tulips look ripe for a large rally in the short term,” Halley said.

Read More: 5 crypto experts explain why bitcoin is charging back into a bull market after a brief dip below $30,000 – plus 3 under-the-radar ways to gain balanced exposure to the crypto ecosystem

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Ark Invest’s Cathie Wood defends bitcoin as an inflation hedge in crypto panel with Elon Musk

Cathie Wood
Cathie Wood

  • Cathie Wood defended bitcoin’s role as an inflation hedge during a panel with Jack Dorsey and Elon Musk.
  • The Ark Invest founder and CEO said bitcoin will serve as an inflation hedge in emerging market countries.
  • She said citizens in emerging markets with “significant inflation” will migrate to bitcoin and other means to preserve their purchasing power.
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Ark Invest founder and CEO Cathie Wood defended bitcoin’s role as an inflation hedge during a Wednesday panel discussion alongside Jack Dorsey and Elon Musk.

The fund manager said bitcoin will serve as a hedge against inflation in certain situations, citing emerging markets as an example.

“There are a lot of emerging markets that are suffering from significant inflation-in other words, the purchasing power of those populations is going down. So they are going to migrate to bitcoin and other ways to preserve purchasing power,” Wood said.

She made the remarks when asked what advice she would give for institutions looking to put bitcoin on their balance sheets. Wood added that being able to sell to people who have migrated to bitcoin in inflationary situations would be “very useful” for corporations.

Earlier in the panel, Wood discussed how bitcoin’s fixed supply of 21 million tokens helps it’s role in preserving purchasing power.

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‘I might pump but I don’t dump’: Elon Musk outlined his broad approach to crypto investing in a panel also featuring Cathie Wood and Jack Dorsey

Elon Musk
Elon Musk

  • Elon Musk on Wednesday said he is a supporter of bitcoin and wants to see the cryptocurrency succeed.
  • “If the price of bitcoin goes down, I lose money. I might pump but I don’t dump,” Musk said during “The B Word” event.
  • Musk spoke on the panel alongside Twitter chief Jack Dorsey and Ark Invest CEO Cathie Wood.
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Elon Musk on Wednesday detailed his thoughts on cryptocurrencies, saying on a live panel that he is a supporter of bitcoin and would like to see the asset succeed.

“If the price of bitcoin goes down, I lose money. I might pump but I don’t dump,” Musk said during “The B Word” event, which also featured Twitter chief Jack Dorsey and Ark Invest CEO Cathie Wood.

He continued: “I definitely do not believe in getting the price high and selling or anything like that. I’d like to see bitcoin succeed.”

The Tesla boss also admitted that he holds “far more” bitcoin than dogecoin or ether.

“The doge community I think is somewhat irreverent obviously … and it doesn’t take itself too seriously,” he said. “The most ironic and entertaining outcome would be that the cryptocurrency that was started as a joke to make fun of cryptocurrencies ends up being the leading cryptocurrency.”

Apart from cryptocurrencies, he said he only owns stock of Tesla and SpaceX, and confirmed that both companies hold bitcoin in their balance sheets.

The energy consumed by bitcoin mining came under the microscope in May after Musk abruptly suspended the purchase of Tesla vehicles using bitcoin due to environmental concerns.

Since then, his influence over the cryptocurrency community has waned somewhat.

But Musk insisted his reticence on bitcoin’s energy usage is not financially motivated.

While he doubled down on the negative impacts of bitcoin mining on the environment, he did say during the panel that Tesla is open to accepting bitcoin as payment again.

“I do think long-term renewable energy will actually be the cheapest form of energy. It just doesn’t happen overnight,” he said. “But as long as there is a conscious and determined and real effort by the mining community to move towards renewables, then obviously Tesla can support that.”

Cryptocurrencies, led by bitcoin, have struggled recently to rebound from a massive crash in May when the value of the total market dropped by nearly half in just seven days.

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Cathie Wood’s ARK bought more shares in Grayscale’s trust after bitcoin’s fall below $30,000

Cathie Wood
Cathie Wood

Cathie Wood has added to her bitcoin holdings with another purchase of shares in the Grayscale Bitcoin Trust after the cryptocurrency fell below $30,000 on Tuesday for the first time in almost a month, according to data from her ARK Invest fund.

Wood’s ARK Next Generation Internet fund bought 140,157 shares in the Grayscale Bitcoin Trust.

She’s a self-proclaimed cryptocurrency fan. Her funds hold stakes in crypto exchange Coinbase and payments company Square, which in turn owns a sizeable amount of bitcoin on its balance sheet.

As of Tuesday, ARK’s holdings in Grayscale’s bitcoin trust reached 8.986 million shares.

Grayscale’s trust is the world’s largest bitcoin investment vehicle. It gives investors exposure to the price of bitcoin without having to buy or store it.

Bitcoin reached a five-week low of around $29,400 on Tuesday. Bitcoin has been trading up 5.74% in the last 24 hours. Since hitting an all-time high in April near $64,000, it’s fallen by more than 50%, but is still up by more than 220% compared with last year.

ARK also purchased another 18,735 shares in Coinbase via its ARK Fintech Innovation Fund, according to the company’s website.

Wood is hosting the “B Word” cryptocurrency conference later on Wednesday. It will feature the likes of crypto-influencers like Elon Musk, CEO of Tesla and Jack Dorsey, CEO of Twitter.

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Some investors are betting big on Chinese tech despite Cathie Wood’s warning of a ‘valuation reset’

Cathie Wood
Cathie Wood is the CEO and chief investment officer of ARK Invest, which runs three of the highest-returning stock ETFs of the last three years.

  • Cathie Wood is selling shares in Chinese tech companies, but some investors have a different view.
  • The KraneShares CSI China Internet ETF saw record inflows this week, according to Bloomberg.
  • On Tuesday, Wood told investors, “From a valuation point of view, these stocks have come down and again from a valuation point of view, probably will remain down.”
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Cathie Wood is selling off millions of shares in Chinese tech companies, but some investors think she’s got it backwards.

The KraneShares CSI China Internet ETF, worth some $5 billion, saw two days of record inflows this week, according to a new Bloomberg report. This week, more than $631 million has come into the fund, even as others worry China’s regulatory crackdown on ride-hail firm Didi Chuxing could presage future troubles for Chinese tech companies.

“Maybe Cathie Wood’s getting out was the final [contrarian] sentiment indicator those investors needed,” Susquehanna’s Chris Murphy told Bloomberg.

One reason could be that pessimism about China’s regulatory environment is already priced into the country’s tech stocks. All the while, investors have dove headfirst into US tech, leading certain investors to fret that they are overvalued.

“Right now, the momentum-chasing trade has been in the large-cap U.S. tech names. But if it shifts to China tech, watch out,” said Murphy.

The KraneShares ETF’s number one holding, Tencent, has taken a beating recently, falling over 16% in the past six months. Likewise for Alibaba, its number two, down 15% over the same period.

Wood’s Disruptive Innovation ETF has sold one million shares of Tencent since February.

On Tuesday, Wood told investors, “From a valuation point of view, these stocks have come down and again from a valuation point of view, probably will remain down.”

“I do think there’s a valuation reset,” she added.

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Cathie Wood’s Ark Invest is working with provider 21Shares to create a bitcoin ETF

Cathie Wood

Ark Invest – the firm run by star stock picker Cathie Wood – has partnered with exchange-traded fund provider 21Shares to to create a bitcoin exchange-traded fund, according to a filing with the Securities and Exchange Commission.

The ARK 21Shares Bitcoin ETF will track the S&P Bitcoin index and trade on the Cboe BZX Exchange under the ticker ARKB. Its investment objective is quite simple: track the price of bitcoin.

A prominent bitcoin bull, Wood has been loading up on bitcoin-related investments such as Grayscale Bitcoin Trust and Coinbase Global over the last few months.

The proposed bitcoin ETF joins a long list of over a dozen applications waiting for approval from the SEC. The agency for its part has recently postponed another decision to approve a bitcoin ETF.

Bitcoin has gained mainstream adoption of late, soaring above a market capitalization of $1 trillion. It has however been trading rangebound in the past days at just half of its $64,000 peak in April.

Read more: Here are 3 altcoins that could surge by 1000% – including the eco-friendly version of bitcoin – according to a crypto analyst and entrepreneur who vets early-stage projects

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US stocks trade mixed with Nasdaq at a record high as investors weigh recovery signals

Stock Market

US stocks closed mixed on Wednesday, with the S&P 500 making turning lower late in the day while the Nasdaq ended at a record high.

“US stocks are stabilizing as investors are clearly in wait-and-see mode over the current wave of inflationary pressures,” Edward Moya, senior market analyst at Oanda, said in a statement. “Equities have quickly bounced back from last week’s Fed-induced selloff as investors quickly realize interest rates will not move anytime soon.”

Equities were up and down throughout the day, dipping lower after Atlanta Fed President Raphael Bostic said the central bank could raise rates in 2022, as well as start tapering asset purchases in the near term. He also said higher inflation in the US could last up to nine month.

The US 10-year Treasury note was last at 1.492%. On Tuesday, yields fell 2 basis points, responding to the Fed’s more tempered policy outlook.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

Microsoft still has 23% upside potential even after it surpassed a $2 trillion valuation on Tuesday, according to Wedbush analyst Dan Ives. He also increased his price target to $325 from $310 and reiterated his “outperform” rating on the stock.

Mortgage giants Fannie Mae and Freddie Mac plunged as much as 45% following a ruling from the Supreme Court. In a 7-2 decision, the court gave the US President authority to remove the head of the Federal Housing Finance Agency, complicating the prospects for their release from government control.

Meanwhile, the cryptocurrency space has been recovering from its most recent sell-off.

Bitcoin staged a rebound after wiping out all its gains for 2021 at one point the day prior. The world’s largest cryptocurrency climbed as much as 6% to $34,821.53.

Cathie Wood’s ARK ETFs took advantage of last week’s crypto carnage to load up on shares of Coinbase and Grayscale Bitcoin Trust, fund filings show.

Crypto exchange FTX announced it is partnering with Major League Baseball to become the first cryptocurrency exchange sponsor in professional sports.

Oil rose ahead of a meeting of the OPEC+ group next week.

West Texas Intermediate crude climbed 0.48% to $73.20 per barrel. Brent crude, oil’s international benchmark, jumped by $0.57% to $75.24 – edging to its highest since late 2018.

Gold slightly rose 0.03% to $1,778.03 per ounce.

Lumber fell as much as 3% to $859.8 per thousand board feet, extending the fall beneath $900 as the commodity’s rally continues to cool off.

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Cathie Wood’s Ark ETFs bought the dip in DraftKings after a short-seller report sent shares tanking

DraftKings New England Patriots
  • Two of Cathie Wood’s ARK ETFs bought a combined 870,299 shares of DraftKings on Tuesday.
  • The purchases came after a dip in share prices due to a short-seller report from Hindenburg Research.
  • DraftKings received analyst support from Morgan Stanley and Jefferies after the news broke.
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Two of Cathie Wood’s actively managed Ark ETFs bought the dip in DraftKings on Tuesday, acquiring a combined 870,299 shares after a short-seller report sent the stock sinking.

Specifically, Wood’s Ark Next Generation Internet ETF bought 181,597 shares, while the Ark Innovation ETF bought 688,702 shares, according to a daily email from Ark’s trading desk outlining recent trades.

The combined stock was worth some $42,218,204 as of Tuesday’s closing price.

DraftKings represents the 17th-largest holding of the Ark Innovation ETF and the 19th-largest component of the Ark Next Generation Internet ETF.

DraftKings’ stock came under pressure on Tuesday after the noted short-seller Hindenburg Research released a report detailing what they describe as “black market operations” at the fantasy sports and sports betting operator.

While the stock fell as much as 12% on Tuesday, it recovered to end the day down just 4%. Now, DraftKings has received some much-needed analyst support.

Thomas Allen, the managing director of equity research at Morgan Stanley, reiterated his “overweight” rating and $58 price target on shares of DraftKings after the short-seller report.

The analyst argued that “unregulated” market exposure is common for international online gaming/sports betting companies and that DraftKings’ partner, SBTech, has exposure that is more in the “grey market” area.

“We are Overweight DKNG on the thesis that its customer acquisition advantage through its legacy DFS business will drive outsized US B2C sports betting revenue and, in turn, profitability compared to consensus,” Allen said.

Jefferies analyst David Katz also maintained his “buy” rating and $75 price target on DraftKings, arguing that the SBTech acquisition was mainly meant to help the company own and developing the right betting technology, not gain international revenue.

Read more: A client portfolio manager at Cathie Wood’s Ark Invest shares which of its ETFs are projected to see the most growth over the next 5 years, and explains the recent downturn in the broader family

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