Ark Invest has sold millions of dollars worth of shares in Coinbase, Nvidia, and Robinhood.
This delisting is despite strong earnings from these companies.
Cathie Wood’s investment management business, Ark Invest, has sold shares of Coinbase (COIN), Nvidia (NVDA), and Robinhood (HOOD). This selling pattern is happening in spite of these stocks soared to new highs after reporting better-than-expected earnings.
The firm has sold over $12 million worth of Coinbase shares, $4 million worth of Nvidia shares, and $3 million worth of Robinhood shares in the past week. It sold a total of 72,242 Coinbase shares, 5,067 Nvidia shares, and 332,394 Robinhood. Although the prices of all these stocks have seen a 30% surge in one month.
Coinbase, the largest cryptocurrency exchange in the US, reported strong earnings for the fourth quarter of 2023, beating analysts’ expectations. The corporation reported sales of $905 million in the final quarter of 2023, up by more than fifty percent from $605 million in the same time the previous year.
Nvidia, the leading chipmaker for gaming and artificial intelligence, also delivered impressive earnings for the fourth quarter of 2023, surpassing analysts’ estimates. The company recorded sales of $22.1 billion in the fourth quarter, up 22% since the quarter before it and 265% from a year before.
Robinhood, the popular trading app for retail investors, also beat earnings expectations for the fourth quarter of 2023, despite facing regulatory scrutiny and lawsuits. Total net revenues reached 24% year on year to $471 million, owing to greater net interest, transactional, and other income.
Ark Invest Cashes Out Amid Stock Surge
In the past week, ARK Innovation ETF (ARKK) and other Ark Invest funds consistently sold Coinbase (COIN) shares following the company’s better-than-expected earnings report. On Feb 22, ARK Innovation ETF sold 2,828 COIN shares as the price reached a 2-year high of $190.
This followed previous days’ sell-offs: on Feb 21, ARKK and Ark Fintech Innovation ETF (ARKF) sold a total of 40,683 COIN shares, and on Feb 20, ARKK, ARKF, and ARK Next Generation Internet ETF (ARKW) offloaded a combined 28,731 COIN shares.
The cumulative value of these sales amounted to $31 million. Despite these sell-offs, Coinbase (COIN) experienced a 12.26% price decline for the week, closing at $165.98 on Friday, with an additional 0.59% drop after hours.
Despite the strong earnings, Ark Invest has been selling shares. ARK Autonomous Technology & Robotics ETF (ARKQ) sold 12,146 Google and 2,707 Nvidia shares. Additionally, ARK Next Generation Internet ETF (ARKW) also engaged in selling activities, offloading 5,067 Nvidia shares.
Additionally, ARK Next Generation Internet ETF (ARKW) sold 190,413 Robinhood shares, while ARK Fintech Innovation ETF (ARKF) offloaded 104,669 shares on Feb 20. Further, on Feb 22, ARK collectively divested 37,312 shares.
Despite these sell-offs, the price of Robinhood Markets (HOOD) experienced an 8.46% increase for the week, closing at $14.48 on Friday, with an additional 1.17% surge in after-market hours.
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