Key Highlights
- ARK Innovation ETF acquired 97,420 shares of both Class A and Class C Alphabet stock, totaling approximately $162 million and representing 2.33% of its holdings
- Under new leadership from CEO Greg Abel, Berkshire Hathaway purchased $10 billion worth of Alphabet shares at approximately 6% below recent prices
- On June 3, ARK purchased 267,582 total Alphabet shares valued at roughly $95.9 million across its various investment funds
- ARK simultaneously added positions in Alibaba and Meta while reducing its AMD holdings by approximately $39 million
- Following an equity offering of around $85 billion, Alphabet shares declined 4.6% over two sessions, though they remain up 113% year-over-year
In a rare alignment of investment philosophies, both Cathie Wood’s growth-oriented firm and Warren Buffett’s value-focused Berkshire Hathaway have taken significant positions in Alphabet—an uncommon occurrence for a single stock to attract both investment approaches simultaneously.
On Monday, Berkshire Hathaway made a substantial $10 billion investment in Alphabet’s common shares, securing them at approximately 6% below recent trading levels. This transaction marked one of the initial significant investments executed under the leadership of Buffett’s successor, Greg Abel.
Several days afterward, ARK Invest made its move. On Wednesday, June 3, the firm’s flagship ARK Innovation ETF purchased 97,420 shares each of Alphabet’s Class A and Class C stock. At Wednesday’s closing prices, this combined position was worth slightly more than $162 million, accounting for 2.33% of the ETF’s total holdings.
The Catalyst Behind Simultaneous Purchases
Alphabet’s stock experienced a decline of roughly 4.6% across two consecutive trading days. This downturn followed the company’s announcement of plans to secure approximately $84.75 billion in capital to expand its AI infrastructure and computational capabilities.
This market correction created an attractive entry point for both investment firms at reduced valuations. ARK accumulated 267,582 Alphabet shares in total across its suite of funds, representing an investment of approximately $95.9 million.
Multiple ARK ETFs participated in the buying activity. The firm’s Autonomous and Robotics Technology fund, Next Generation Internet fund, and Space and Defense Innovation fund all accumulated Alphabet positions on the identical trading day.
Over the trailing twelve months, Alphabet has delivered impressive returns of 113%. Market enthusiasm has centered on the company’s Gemini AI chatbot platform and proprietary tensor processing unit chip technology. Analyst consensus reflects a Strong Buy rating, with the average target price of $427.89 suggesting potential upside of approximately 19%.
Additional Portfolio Adjustments by ARK on June 3
Alongside its Alphabet purchases, ARK acquired 30,273 Alibaba shares representing roughly $4 million in value. The Chinese technology conglomerate’s stock declined 2.76% during Wednesday’s session and has fallen approximately 11% during the current year.
ARK additionally purchased 5,608 shares of Meta Platforms, worth approximately $3.35 million. Meta’s stock climbed more than 4% that trading day despite being down roughly 10% year-to-date. Wall Street analysts maintain a Strong Buy recommendation on Meta with approximately 32% projected upside.
Regarding portfolio reductions, ARK decreased its Advanced Micro Devices exposure by selling 74,838 shares valued at roughly $39 million. AMD has experienced extraordinary growth exceeding 140% year-to-date, driven by robust demand for its artificial intelligence chip products.
ARK also liquidated portions of its Baidu and Teradyne holdings, selling approximately $14.6 million and $18.3 million worth of shares in those companies, respectively.
Notwithstanding the AMD sales, Wall Street maintains a Strong Buy consensus rating on the semiconductor stock. However, the average analyst price target of $477.33 currently sits below the stock’s recent trading range.
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