Cathie Wood, the renowned investor, recently adjusted her investment strategy by selling Tesla (TSLA, Financial) shares and increasing her holdings in Amazon (AMZN) and Meta (META). ARK Investment Management, under Wood's leadership, revealed that its ARK Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW) sold a total of 120,141 Tesla shares, valued at $31.54 million. This follows a prior sale of 85,456 Tesla shares valued at approximately $22.22 million.
Wood's decision to sell Tesla shares coincides with the company's better-than-expected third-quarter earnings report, which drove its stock price up. Despite these sales, Tesla remains the largest holding within these two ETFs. Analysts, however, have mixed opinions about Tesla's future, with 11 recommending a "buy," 16 a "hold," and 8 recommending a "sell." The average target price is $207.83, suggesting a potential 20.8% downside. Year-to-date, Tesla's stock has risen by 5.6%.
Amidst these transactions, Wood has also increased her positions in Amazon and Meta. The ARKK and ARKW ETFs acquired an additional 141,504 Amazon shares, worth $26.66 million. This move anticipates a robust third-quarter earnings report from Amazon, for which Wall Street remains highly optimistic. Among analysts, 46 have rated the stock a "buy," while 2 suggest "hold." The average target stock price indicates nearly 19% upside potential. So far this year, Amazon shares have surged by 24%.
Moreover, the ARKK and ARKW ETFs purchased over 22,175 and 16,580 Meta shares respectively, totaling approximately $22.41 million. Wood likely sees significant potential in Meta's expanding AI endeavors and its family of applications. Meta is set to announce its third-quarter results soon, and expectations are high on Wall Street. Of the analysts covering Meta, 42 recommend "buy," 4 suggest "hold," and 1 advises "sell." The average target price implies an 8.8% upside. Year-to-date, Meta's stock has increased by 63.8%.
