From Nasdaq:

Cathie Wood is rebalancing her Ark Innovation ETF, selling millions of shares in Coinbase, Zoom Video Communications, and Twilio. Despite praising these investments, Wood is leaning away from them. Ark Invest seeks disruptive innovation companies, with Coinbase, Zoom, and Twilio fitting the profile. Profits are being cashed in and redistributed, with a focus on lower stock prices and valuation ratios.

Ark Innovation ETF sold 370,000 Coinbase shares in February, representing a 7% trim and a larger 32% reduction since December. Wood emphasizes that this is a matter of portfolio management and profit-taking. While trimming investments in Coinbase, she still believes in rising Bitcoin prices and argues for Coinbase’s regulatory compliance advantage in the crypto-trading market.

In contrast to Coinbase, Zoom Video experienced a 25% sell-off in February. Wood stopped buying Zoom shares in October 2022 and the heavy selling reflects frustration with its stalled sales growth. Zoom remains one of Ark Innovation ETF’s 10 largest investments, with a 4.8% portion.

Twilio experienced rapid sales in the last week of January, reflecting a 50% rise from 2023’s annual lows. Despite initial excitement over Twilio’s undervalued status, Wood’s recent unloading suggests disappointment with new management. Her Twilio stake has decreased by 38% in February.

In summary, Cathie Wood’s Ark Innovation ETF has made prudent profit-taking moves with Coinbase while showing disappointment with two underperforming growth stocks, Zoom Video and Twilio. Analysts at The Motley Fool did not include Coinbase Global in the 10 best stocks for investors to buy now. However, their Stock Advisor service has provided successful stock picks and guidance since 2002.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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