Home Stock Markets Cathie Wood Watch: Ark Buys GM Shares for First Time

Cathie Wood Watch: Ark Buys GM Shares for First Time

by WOOWinvest
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What Cathie Wood Sees in the Future for Technology, Innovation

Prominent investor Cathy Wood, CEO of Ark Investment Management, bought some stocks she was familiar with on Monday, making her first acquisition of a prominent U.S. automaker.

Wood is doubling down on some of her holdings as tech stocks collapse. She has said the dip represents a buying opportunity.

All valuations below are from Monday’s closing price.

Ark Autonomous Technology and Robotics ETF (ARKQ) – Get the ARK Autonomous Technology and Robotics ETF report Purchased 568,631 Matterport shares (MTTR) , which provides a three-dimensional virtual tour. The stock is valued at $2.37 million.

Ark Fund bought 72,339 shares of Coinbase (coin) , the largest cryptocurrency exchange in the United States, worth $6 million.Ark Fund snaps up 370,562 DraftKings shares (DKNG) – Get DraftKings Inc Class A Reportan online sports betting company valued at $4.1 million.

General Purchasing

Wood buys auto giant General Motors for the first time (GM) – Get General Motors Corporation Report. Ark Autonomous Technology gets 158,187 shares worth $6 million.

On the sell-side, the Ark Innovations ETF (ARKK) – Get the ARK Innovation ETF report Selling 15,862 shares of electric car giant Tesla (TSLA) – Get Tesla Inc reportworth $12.5 million.

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Wood has said in the past that her stock sale represents only a profit-taking and she still believes in the company. Tesla is still the first controlling party of Ark Innovations.

Ark Next Generation Internet ETF (ARKW) – Get the ARK Next Generation Internet ETF report Reduced holdings of Nano Dimension by 1,279,189 shares (NNDM) – Get Nano Dimension Ltd. reportan Israeli manufacturer of technology solutions for manufacturing, valued at $3.3 million.

Morningstar’s take on General Motors

As for GM, Morningstar analyst David Whiston also likes it. He sees the stock’s fair value at $70, compared to a recent offer of $39.49.

In his comments, he wrote that GM had a pretty good first quarter given the state of the economy. “We will not change our estimate of GM’s fair value given what we believe to be a solid first quarter and a reduction in vehicle production given U.S. inflation, high commodity costs and ongoing supply chain issues,” Whiston said. “

Faced with these headwinds, “we are concerned that GM will lower its guidance,” he said. But it didn’t change its adjusted EBIT (EBIT) or adjusted auto cash flow estimates.

Looking at the company as a whole, “we see GM’s competitive lineup in all areas, coupled with a reduced cost base, ultimately allowing the company to have the scale to match its size,” Whiston said.

“We think GM’s earnings potential is very good because the company has a healthy North American division and a near-establishment financial arm that works with GM Financial.”

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