Cathie Wood’s Ark Invest ETFs continue to increase Amazon (AMZN) and Meta Platforms (META) stakes and dump Tesla (TSLA) shares, among other trades. According to Ark’s trading statement from October 28, these trades were made through Wood’s ARK Innovation ETF (ARKK) and Ark Next Generation Internet (ARKW) ETFs. Let’s look at these trades in detail.
Is AMZN Stock a Buy?
Wall Street remains highly optimistic about Amazon’s stock trajectory ahead of its Q3 FY24 results scheduled for October 31. On TipRanks, AMZN stock has a Strong Buy consensus rating based on 46 Buys versus two Hold ratings. The average Amazon.com price target of $224.14 implies a nearly 19% upside potential from current levels. Year-to-date, AMZN stock has gained 24%.
The ARKK and ARKW ETFs bought an additional 141,504 AMZN shares worth a total of $26.66 million. Wood has continued to amass Amazon shares in the past few trading sessions, in the expectation of blockbuster earnings potential.
Is META a Buy, Hold, or Sell?
Meta Platforms is set to report its Q3 FY24 results tomorrow, with analysts’ expectations running high. META stock commands a Strong Buy consensus rating on TipRanks, backed by 42 Buys, four Holds, and one Sell recommendation. Also, the average Meta Platforms stock price target of $628.77 implies 8.8% upside potential from current levels. Shares have gained 63.8% so far this year.
Yesterday, Wood’s ARKK and ARKW ETFs purchased more than 22,175 and 16,580 shares, respectively, of Meta Platforms. In total, the trade amounted to $22.41 million. Wood probably sees high potential in Meta’s Family of Apps (FoA) and its growing AI (artificial intelligence) ambitions.
Is Tesla a Buy, Sell, or Hold?
Unfortunately for electric vehicle (EV) maker Tesla, analysts remain on the sidelines on the stock despite its blowout quarterly earnings. TSLA stock has a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sell ratings on TipRanks. The average Tesla price target of $207.83 implies 20.8% downside potential from current levels. Year-to-date TSLA shares have gained 5.6%.
Wood seems to be capitalizing on Tesla’s post-earnings stock surge. On October 28, ARKW and ARKK sold a total of 120,141 Tesla shares valued at $31.54 million. Despite the continued stock sale, Tesla remains the number one holding in both the ETF’s portfolios.
