Cathie Wood's Ark Invest Snaps Up $5.3M In Beaten-Down Crowdstrike Shares, Dumps $3.7M Worth Of Tesla Stock Before Q2 Earnings

Benzinga2024-07-23

On Monday, Cathie Wood-led Ark Invest made significant trades involving CrowdStrike Holdings, Inc. and Tesla Motors, despite the turbulent market conditions surrounding these companies.

The CrowdStrike Trade

The ARK Fintech Innovation ETF and ARK Next Generation Internation ETF funds bought a total of 20,219 shares of CrowdStrike, valued at approximately $5.34 million based on the closing price of $263.91 on the same day. This move comes despite CrowdStrike’s recent challenges.

CrowdStrike’s shares had been declining following a global IT outage last week, for which the cybersecurity firm has accepted responsibility.

CEO George Kurtz attributed the outage to “a defect found in a single content update” and confirmed it was not a security incident or cyberattack. Despite this, analysts predict the outage could cost over $1 billion, with potential lawsuits and demands for remuneration looming.

Former hedge fund manager and TV anchor Jim Cramer has praised Crowdstrike’s response to the outage and expressed optimism about the company’s future. He also appreciated Kurtz’ handling of the tech glitch that affected users of Microsoft’s Windows operating system.

“CrowdStrike has unbelievable technology and it was not their technology that was the problem, it was a sloppy update, of which he completely owned,” said Cramer.

The Tesla Trade

Ark Invest’s ARKW fund sold 14,859 shares of Tesla Motors , valued at approximately $3.74 million based on the closing price of $251.51 on the same day. Ark Invest is typically bullish stance on the Elon Musk-led electric vehicle maker.

Ark Invest has been selling Tesla shares in recent sessions, despite Wood’s optimistic outlook on the company’s potential in the autonomous taxi sector. Wood has a $2,600 target for the EV maker. Tesla is set to report second-quarter earnings on Tuesday.

Other Key Trades:

  • Ark Invest’s ARKF fund sold shares of Kaspi.KZ .

  • Ark Invest’s ARKG fund sold shares of Teladoc Health Inc. and bought shares of 10x Genomics, Inc..

  • Ark Invest’s ARKK fund sold shares of Teladoc Health Inc (TDOC) and bought shares of 10X Genomics Inc (TXG).

  • Ark Invest’s ARKQ fund bought shares of Oklo Inc..

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Comments

  • Ruw
    2024-07-23
    Ruw
    This seems some buddies jumping in to stop bleeding of CS. It doesn't make sense at all. This is not an industry wide negative sentiment or a small price drop. CS was pushing untested updates to 8 million+ systems. That is the biggest sin you can commit as a software vendor. Not they got exposed for their bad practices. Loss of revenue is inevitable for next 1-2 years. I don't think a fund manager would expose their stakeholders such a risk for two years.[Facepalm]  
  • Guavaxf30
    2024-07-23
    Guavaxf30
    Someone please explain this to a simple trader. "Ark Invest has been selling Tesla shares in recent sessions, despite Wood’s optimistic outlook on the company’s potential in the autonomous taxi sector. Wood has a $2,600 target for the EV maker. Tesla is set to report second-quarter earnings on Tuesday." Why sell when you are bullish on the stock? This is the third or fourth time a sale has been executed by Ark on Tesla this month. Unless you know something we don't and your bull target of $2,600 is so suckers like us will buy what you are dumping?
    • SPACE ROCKETReplyGuavaxf30
      Yeah. It's a tough biz for TSLA clearly. And most other EV companies. TSLA's previous quarter results were horrible too, but stocks rose then because Elon fooled everyone into thinking robotaxis would be launched soon. And look what happened now? They have been postponed, yet again. 🙄
    • Guavaxf30
      Ya. You are right. The quarterly results were horrible. Clearly Katie saw this coming and went exit stage left….
    • SPACE ROCKET
      Cause she knows TSLA would likely post lacklustre results and its stocks would drop. So she rather create cash at its peak or she may have to wait a long time for TSLA to hit this price again.
    • Guavaxf30
      Could this be the reason? Tesla sales continue to slow down. Earlier in California, now this latest report on Chinese EV registration .


      Tesla (NASDAQ: TSLA) had 10,500 insurance registrations in China last week, down 7.89 percent from 11,400 the week before.
  • romanc9
    2024-07-23
    romanc9
    Sell some stocks that is in the profit and buy some that is beaten down. Still have alot holding on to. So don't think is a big deal.
  • valentia
    2024-07-23
    valentia
    I probably would enter at $200... possible to hit this price in the next few days?
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