Cathie Wood Buys Nvidia Dip After Jensen Huang Spy Report Drops Shares 4%
TLDR
- ARK Invest bought 90,443 Nvidia shares worth $16,880,281 on November 9.
- Nvidia fell 4.27% to $178.67 after reports about CEO Jensen Huang.
- ARK also bought SoFi Technologies and Scribe Therapeutics shares.
- The firm sold nine holdings, including Palantir, Block and Tempus AI.
- Nvidia reports fiscal third-quarter results next week.
Cathie Wood’s ARK Invest bought about $16.9 million of Nvidia shares on Monday, November 9. The firm spread the purchase of 90,443 shares across several of its ETFs.
Nvidia stock closed at $178.67, down 4.27%, after a weekend of troubling headlines. Reports claimed CEO Jensen Huang had an inappropriate relationship with an alleged Chinese spy.
What ARK Bought
The Nvidia purchase followed a much smaller buy of 405 shares on November 6. ARK has now added to its Nvidia position twice this month.
Nvidia’s board is investigating the matter. The chipmaker’s market value was $4.31 trillion at Monday’s close, and shares have fallen 27% since a record high last month.
ARK also bought 405,720 shares of SoFi Technologies for $6,576,721. The trades were made in the ARKK and ARKF funds.
SoFi shares rose 3.33% to close at $16.75. The Motley Fool reported the stock is down 41% over the past year.
The digital bank grew its members 35% to 17.1 million over the past year. Revenue rose 44% in its latest quarter, and the company raised its guidance two weeks ago.
SoFi currently offers up to 4.4% interest on savings accounts. The company’s stock trades at a year-ahead earnings multiple in the high teens.
The third purchase was 5,660 shares of Scribe Therapeutics in the ARKG fund, worth $88,862. Scribe shares rose 6.24% to $16.68.
Scribe develops gene-editing treatments using a platform called ELXR. The method uses epigenetic silencing to switch off disease-causing genes without changing DNA.
The company says it has enough cash to fund operations through early 2029. Its stock is down 22% over the past year.
What ARK Sold
ARK sold 72,700 shares of Tempus AI through ARKK for $5,528,835. It also sold 68,997 shares of Block through the same fund for $5,897,863.
ARK sold 8,509 shares of Palantir Technologies through ARKF, valued at $1,364,673. The sale followed a period in which the firm had been buying the stock.
The firm sold 150,588 shares of BYD through ARKQ for $1,423,056. A larger BYD sale took place on November 6.
ARK sold 49,767 shares of Bullish for $1,060,534 and 3,712 shares of Synopsys for $1,672,107. Smaller sales included Honeywell Aerospace at $622,231 and Teradyne at $649,204.
ARK also sold 519 shares of Broadcom for $152,425. Nvidia is expected to report fiscal third-quarter results next week, with growth in revenue and earnings of roughly 90% forecast, and the stock trades at 11.2 times next year’s profit target.