Key Takeaways
- ARK Invest acquired approximately $19.4M in CoreWeave stock following a sharp 19% decline after the company’s Q4 earnings report
- The fund’s most significant trade was a $23.2M investment in Kratos Defense & Security Solutions
- Teradyne holdings were reduced by $12.9M, part of ARK’s ongoing pattern of trimming this position
- ARK decreased its Rocket Lab stake despite the company exceeding earnings forecasts, though shares declined approximately 5%
- Additional transactions included Roku sales and a new position in biotech company Generate Biomedicines
Cathie Wood’s investment firm ARK Invest executed a series of strategic portfolio adjustments on Friday, February 27. These transactions spanned multiple sectors including technology, defense, and biotechnology, featuring both new acquisitions and position reductions.
The day’s most substantial acquisition targeted Kratos Defense & Security Solutions. ARK purchased 252,169 shares valued at $23.2 million. The company specializes in unmanned aerial vehicles and autonomous defense technology, aligning with ARK’s strategic focus on robotics and automation sectors.
The fund’s second-largest investment went to CoreWeave, a provider of AI-focused cloud infrastructure. ARK accumulated 198,980 shares totaling approximately $19.4 million, distributed between its ARKK and ARKW exchange-traded funds.
CoreWeave, Inc. Class A Common Stock, CRWV
This CoreWeave acquisition occurred during a session where the stock experienced a significant 19% decline. The price drop was triggered by fourth-quarter financial results that revealed robust revenue growth but also expanded losses and increased capital expenditures beyond analyst projections.
ARK’s contrarian move to acquire shares during the selloff indicates management’s belief that the market reaction was temporary rather than indicative of fundamental business challenges. CoreWeave operates in the AI computing infrastructure space, a sector experiencing substantial demand expansion.
CoreWeave maintains a Moderate Buy rating consensus among Wall Street analysts. With eleven Buy recommendations and eight Hold ratings, the average analyst price target stands at $114.18, suggesting potential upside of approximately 43.5% from current trading levels.
Teradyne and Rocket Lab Positions Scaled Back
Among ARK’s divestments, the fund liquidated 38,773 Teradyne shares valued at $12.9 million across several ETFs. Teradyne manufactures semiconductor testing systems and industrial automation equipment. This transaction continues ARK’s recent pattern of systematically reducing exposure to this holding.
The fund also divested 46,921 shares of Rocket Lab, representing approximately $3.4 million in value. This sale followed Rocket Lab’s quarterly earnings announcement, which surpassed analyst expectations for both earnings and revenue, though the stock nevertheless declined roughly 5% during Friday’s session.
Rocket Lab disclosed robust launch operations and an expanding order backlog. However, the company’s announcement that its larger Neutron rocket’s inaugural launch would be delayed until late 2026 may have contributed to investor hesitation.
Additional Portfolio Adjustments in Tech and Biotech
ARK liquidated 46,389 shares of Roku valued at $4.3 million from its ARKK fund. The firm did not disclose specific rationale for this divestment.
Within the biotechnology sector, ARK established a position by purchasing 459,525 shares of Generate Biomedicines worth $7.4 million through its ARKG fund. Simultaneously, it reduced its Ionis Pharmaceuticals holding by 39,423 shares, valued at $3.2 million.
The fund also sold 10,590 shares of Deere & Co worth $6.6 million and decreased its Guardant Health position by 27,334 shares for $2.7 million.
Minor adjustments included a reduction of 205,211 PagerDuty shares worth $1.5 million and an acquisition of 14,097 Brera Holdings shares valued at approximately $15,600.
Collectively, the CoreWeave and Kratos acquisitions represented ARK’s two most significant individual transactions on February 27, with combined capital deployment exceeding $42 million.
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