Cathie Wood Bets $21 Million On Robinhood, Snaps Up Netflix, Sells These Two Hot AI Stocks

On Wednesday, Cathie Wood‘s Ark Invest made significant trades involving Robinhood Markets Inc. (NASDAQ:HOOD), Netflix Inc. (NASDAQ:NFLX), Advanced Micro Devices Inc. (NASDAQ:AMD), and Palantir Technologies Inc. (NASDAQ:PLTR). These trades reflect Ark’s strategic positioning in the market amidst various economic indicators and corporate developments.

The Robinhood Trade

ARK Innovation ETF (BATS:ARKK) and ARK Next Generation Internet ETF
(BATS:ARKW) increased their holdings in Robinhood by acquiring a total of 167,489 shares. With Robinhood’s closing price at $127.22, this purchase amounts to approximately $21.3 million.

The move comes as institutional investors show bullish sentiment towards Robinhood, with 65% bullish sentiment in options activity. This optimism is partly driven by the upcoming earnings report expected on November 5, where Robinhood is anticipated to announce earnings of 51 cents per share and revenue of $1.19 billion. 

The Netflix Trade

Ark’s ARKW ETF made a notable acquisition of 15,756 shares of Netflix, valued at approximately $17.6 million based on the closing price of $1116.37.

This purchase occurred despite Netflix’s shares falling over 10% following disappointing third-quarter earnings and one-time tax settlement with Brazil. Netflix reported revenue of $11.51 billion, slightly missing the consensus estimate. The company’s earnings per share also fell short of expectations, contributing to the stock’s decline. 

The AMD Trade

Ark Invest’s ARKW ETF reduced its stake in AMD by selling 44,909 shares, equating to approximately $10.3 million.

This decision aligns with broader market concerns regarding potential U.S. sanctions on software exports to China, which could impact companies like AMD. The proposed sanctions are part of a broader trade conflict escalation, potentially affecting a wide range of tech products. 

The Palantir Trade

Ark’s ARKW ETF also trimmed its position in Palantir by selling 23,768 shares, valued at approximately $4.2 million.

This move comes as Palantir’s stock faces pressure amid a general downturn in tech stocks. Despite the decline, Palantir continues to receive strategic validation, with Oracle co-founder Larry Ellison highlighting the importance of privately owned data, a key component of Palantir’s business model.

Other Key Trades

• Sold 63,870 shares of Roblox Corp (Pre-Reincorporation) (RBLX) from ARKK and 47,979 shares from ARKW.
• Sold 43,214 shares of Roku Inc (ROKU) from ARKK and 12,041 from ARKW.
• Sold 25,244 shares of Shopify Inc (SHOP) from ARKK and 7,030 shares from ARKW.

Benzinga’s Edge Stock Rankings indicate Robinhood stock has a Value in the 5th percentile. Here is how the stock ranks on other parameters.

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Photo Courtesy: PJ McDonnell on Shutterstock.com

This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal