Cathie Wood’s ARK line of ETFs made some significant trades yesterday, including loading up more Salesforce (CRM) stock and dumping Spotify (SPOT) stock. The Ark Next Generation Internet ETF (ARKW) added 15,345 shares of the customer relationship management software maker. The investment was worth about $4.72 million. On the other hand, the ARKW ETF sold 6,629 shares of the Canadian streaming giant, amounting to a roughly $4 million sell trade.
Following these latest trades, Salesforce ranks as the 27th holding in the ARKW ETF, representing 1.33% of the total holdings. Meanwhile, Spotify is the 16th largest investment, representing 1.77% of the total portfolio.
Is Salesforce a Good Stock to Buy?
Salesforce reported mixed results for Q4FY24, with earnings beating but sales missing estimates. Following the disappointing results and guidance, several analysts lowered their price target on the stock, dragging down CRM stock further. Wood is likely capitalizing on the downward movement of CRM stock and adding more shares in anticipation of future growth.
On TipRanks, CRM stock has a Moderate Buy consensus rating as analysts remain divided on the stock’s trajectory. The rating is based on 32 Buys, seven Holds, and two Sell ratings received during the past three months. The average Salesforce price target of $380.97 implies 29.2% upside potential from current levels. In the past year, CRM stock has lost 1.1%.
Is Spotify Good to Buy Now?
Wood’s decision to offload Spotify stock comes as a surprise since the hedge fund manager has been a long-term believer in the podcast service provider. Notably, Spotify is facing intense competition from Alphabet’s (GOOGL) YouTube streaming service. The company recently announced that YouTube’s monthly active podcast users crossed the 1-billion-mark, exceeding Spotify’s figure for the first time.
Analysts remain divided on Spotify’s stock trajectory. On TipRanks, SPOT stock has a Moderate Buy consensus rating based on 17 Buys versus eight Hold ratings. The average Spotify price target of $677.38 implies 14.7% upside potential from current levels. Interestingly, SPOT stock has exploded over 134% in the past year.
