In the past week, Ark Invest has reduced its position in Tesla. Simultaneously, the firm has moved to snap up crypto stocks with large investments in Coinbase and Robinhood.
The technology-focused investment management company holds a number of major crypto stocks through its Exchange-Traded Funds (ETFs). Following a devaluation of crypto exchanges like Coinbase earlier this month, their share price has rebounded in the past week.
Ark Invest Dumps Tesla, Among Others, as Tech Stock Rally Dissipates
Through the Ark Innovation ETF and the Ark Next Generation Internet ETF, Ark’s private equity funds offloaded nearly $16 million USD worth of Tesla stock in the past week.
Of course, the firm is still heavily invested in Tesla. But Ark’s move to partially divest from the electric vehicle manufacturer reflects cooling sentiment toward the tech stock. After climbing around 140% in the year to date, several institutional investors have signaled a more bearish near-term outlook for Tesla stock.
In a note to investors on Wednesday, Barclays analyst Dan Levy downgraded Tesla shares to equal weight from overweight.
“We believe the stock’s recent rally can be best explained by the market’s current AI-driven thematic trade […] yet while we aren’t surprised that the stock has participated in the rally, we believe it is prudent to move to the sidelines,” the note stated.
Likewise, on Thursday, Morgan Stanley analyst Adam Jonas also downgraded Tesla to equal weight.
Besides Tesla, Ark has sold off a range of other blue-chip tech stocks this week. For example, on Friday, it offloaded 78,676 shares in Shopify worth over $5 million USD. The investment management firm also reduced its exposure to the online sports betting company DraftKings.
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Author: James Morales
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