Cathie Wood's Recent Portfolio Changes

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【Summary】Cathie Wood of Ark Invest has sold Tesla and Shopify shares and purchased Archer Aviation, a maker of flying vehicles, for the Ark Innovation ETF. Wood remains bullish on Tesla and Shopify, with both still being significant holdings in Ark's portfolios. Archer Aviation has seen significant growth and has secured substantial funding. The company aims to achieve FAA certification and begin commercial operations in 2025.

FutureCar Staff Aug 21, 2023 4:23 PM PT

Ark Invest CEO Cathie Wood has been selling off holdings in Tesla and Shopify from the firm's ETFs. On August 15, Ark Invest sold 1,884 shares of Tesla and the following day sold 182,314 shares of Shopify. However, the funds from these sales are being used to invest in a potentially explosive, high-risk growth stock.

On August 16, Wood's company purchased approximately $16 million worth of Archer Aviation shares for its Ark Innovation ETF. Archer is a maker of electric vehicle takeoff and landing (eVTOL) aircraft, and its business is still in a pre-revenue state.

Despite the recent stock moves, Wood remains bullish on Tesla and Shopify. Tesla is still the largest holding in Ark's flagship Ark Innovation ETF, accounting for 10.1% of the total portfolio weight. Shopify accounts for approximately 9.6% of the total portfolio weight in the Ark Fintech Innovation ETF.

Wood's sales of Tesla and Shopify were relatively small compared to the overall holdings of Ark Invest. The moves were likely made to free up funds for other potential opportunities, such as Archer Aviation.

Archer Aviation went public in 2021 and has seen significant growth since then. Wood believes that Archer has the potential to be a long-term winner in the flying electric vehicles market. In the second quarter, Archer secured $215 million in new investment funding, bringing its total funding to over $1.1 billion.

The urban air-mobility market is projected to be worth $29 billion annually in 2023 and over $1 trillion by 2040. Archer aims to achieve FAA certification and begin commercial operations in 2025. The company's Midnight vehicle has already received the FAA special airworthiness certificate.

While there is promise in Archer's outlook, investors should be aware that it is a highly speculative investment. Wood is known for her high-risk, high-reward growth plays, but Archer Aviation currently represents a relatively small portion of Ark's flagship growth fund.

In conclusion, Wood's recent stock moves indicate her continued confidence in Tesla and Shopify, while also showing her excitement about the potential of Archer Aviation in the eVTOL market.