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Cathie Wood, ARK Invest bought $88 million worth Tesla shares during the fourth quarter. Famous money manager Cathie Wood has been on a dip buying spree. He also bought $11.2 million worth of Coinbase shares last week.
Ark Invest’s Cathie Wood has been on a dip-buying spree, buying up Tesla stock worth $88 million in the fourth quarter 2022. Based on Tesla’s average trading volume from October 3 through December 20, the purchases amount to $88 million.
Tesla is experiencing its worst decline in public life since it went public ten years ago. The electric vehicle manufacturer is now down more than 60%.
Ark Innovation ETF, the manager’s flagship fund worth $6.7 billion, holds Tesla as its third largest holding. ARKK’s Tuesday low of $52 million was partly due to Tesla’s drop to a record low of $2.7 billion in the last two years.
Musk, the CEO of Twitter, has blamed the decline in company share prices on the Federal Reserve. He also said that investors have been discouraged by the Federal Reserve’s aggressive rate increases to combat inflation at near 40 years highs.
Musk tweeted, “Tesla executes better than ever!” Musk tweeted that Tesla is “executing better than ever!” in response to a shareholder who claimed Musk was responsible for Tesla’s $800 billion market cap loss this year.
The chief executive of Tesla and SpaceX stated that they don’t have control over the Federal Reserve. “That’s the real problem.”
Last week, Tesla’s third largest shareholder, KoGuan Leeo, suggested that the company might need a new CEO to help Musk focus on Twitter, a struggling social media platform.
“Elon abandoned Tesla, and Tesla has no working CEO.” Leo tweeted December 15: “Elon abandoned Tesla and Tesla deserves a working CEO.”
Despite the pain, ARK Invest continues its investment in Tesla shares. Investors don’t seem to have abandoned Wood’s growth-focused strategy yet. According to VettaFi data, net fund flows into ARKK ETF have been around $1.5 billion since the beginning of the year.
ARK Invest also bought other ailing stocks. The firm purchased Coinbase Global Inc. stock for $11.2 million last week. Bloomberg data shows that it is Coinbase’s largest shareholder, with a 4.3% stake as at September 30.
ARKK owns 5.9 million shares in the crypto exchange. It was valued at around $207,903,853.82 Wednesday. It holds 3.27% of Coinbase’s position.
ARKK is trading at $32.94 Wednesday morning, down 66% from the year-to-date.
According to the Wall Street Journal, Wood stated that ARKK’s companies are “sacrificing short-term profit for exponential and highly profitable longer term growth.”
Business Insider has the original article.
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By: mchittum@insider.com (Morgan Chittum)
Title: Cathie Wood’s ARK Invest scooped up $88 million in Tesla stock in the 4th quarter amid the famed money manager’s dip-buying spree
Sourced From: markets.businessinsider.com/news/stocks/cathie-wood-ark-invest-buys-millions-tesla-stock-q4-manager-2022-12
Published Date: Wed, 21 Dec 2022 15:55:56 +0000
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