PINS - Cathie Wood is selling crypto stock and buying this social media one why?
2024-03-14 06:49:34 ET
In a move that caught the eyes of investors and analysts alike, Cathie Wood’s Ark Invest made significant trading decisions on Wednesday, offloading shares in Coinbase Global Inc (NASDAQ:COIN) and simultaneously increasing its stake in Pinterest Inc (NYSE:PINS).
These trades signal a strategic shift in Ark Invest’s portfolio, raising questions about the underlying reasons and potential impacts on the broader investment landscape.
The Coinbase conundrum: Why sell now?
Ark Invest’s decision to sell 10,995 shares of Coinbase, valued at approximately $2.8 million, through its various ETFs including ARK Innovation ETF (NYSE:ARKK), ARK Next Generation Internet ETF (NYSE:ARKW), and Ark Fintech Innovation ETF (NYSE:ARKF), has left many pondering the timing.
This move came as Bitcoin reached new all-time highs, soaring to $73,709 on the same day.
The sell-off of Coinbase shares, which closed 1.7% lower at $251.73, coincides with a surge in investments into U.S.-based Bitcoin ETFs, marking a significant moment for cryptocurrency investments.
The Pinterest play: What’s the attraction?
Ark Invest demonstrated a bullish outlook on Pinterest by purchasing 34,653 shares across ARKK and ARKF, amounting to $1.12 million.
This acquisition occurred as Pinterest’s shares dipped slightly by 0.8% to close at $34.60 on Wednesday.
Pinterest has been actively pursuing monetization strategies, including a partnership with Google, akin to its collaboration with Amazon.
Given Pinterest’s 53% surge last year and a 9.5% rise since the onset of 2024—despite a post-earnings drop—Ark Invest’s increased stake raises questions about its vision for the social media platform’s future growth and profitability.
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