Cathie Wood doubles down on Alibaba: ARK Invest snaps up $25M in Chinese tech stocks

This article first appeared on GuruFocus.

ARK Invest funds boosted holdings in Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) while trimming stakes in Reddit (RDDT), Exact Sciences (EXAS) and Iridium Communications (IRDM), according to Wednesday fund disclosures.

The ARK Innovation ETF (ARKK) bought 117,335 BABA shares, the ARK Next Generation Fintech ETF (ARKW) added 33,415 and the ARK Fintech Innovation ETF (ARKF) picked up 6,981, roughly $25.4 million in total devoted to Alibaba. ARKK also purchased 12,006 BIDU shares and the ARK Autonomous Technology & Robotics ETF (ARKQ) acquired 2,525, about $1.9 million combined.

On the sell side, ARK funds sold 40,000 RDDT shares for about $8.3 million, trimmed EXAS by 108,664 shares for roughly $7.3 million and offloaded 192,986 IRDM shares for near $3.2 million.

Alibaba had slipped about 3% around the trades, while Baidu was largely flat. ARK also added to biotech and healthcare names including CRISPR Therapeutics (CRSP), Tempus AI (TEM) and Twist Bioscience (TWST), signaling continued interest in innovation-oriented sectors.

Analysts said the pattern looks like a blend of opportunistic buying in beaten-down Chinese tech and profit-taking in areas where gains had accumulated, with valuation and regulatory risks still key watchpoints.