In this article, we’ll take a look at 11 tech stocks to sell now according to Cathie Wood. To skip our analysis of recent trends and market activity, you can go straight to 5 Tech Stocks to Sell Now According to Cathie Wood,
Cathie Wood is a renowned investor and founder of ARK Investment Management, LLC, an asset management firm focused on thematic investing. It focuses on “investing in technologically enabled innovation that cuts across economic sectors and changes the way our world works.” The company currently invests across a variety of topics including autonomous technology, robotics, artificial intelligence (AI), blockchain technology, multi-omics, space exploration and energy storage.
Cathie Wood’s ARK Investment Management, LLC provides management and supervisory services to several funds, including the ARK Genomic Revolution ETF, ARK Autonomous Technology & Robotics ETF, ARK Innovation ETF, and ARK Venture Fund. Cathie Wood has a significant upside in 2022 so far this year, especially for growth stocks, after a disappointing year. Its flagship ETF, ARK Innovation ETF (ARKK), was up 41.37% as of September 15.
ARK Investment Management, LLC’s portfolio is dominated by leading technology companies, with its top five holdings accounting for approximately 30% of the total portfolio value as of June 30, 2023. Its top holdings include Tesla, Coinbase, UiPath, Roku, and. block. Cathie Wood has been a longtime employee of Tesla, Inc. Tesla’s 8.39% stake in the 13F portfolio of ARK Investment Management, LLC.
In an interview at Barron’s in August, Cathie Wood talked about the potential for benefits from artificial intelligence at companies other than Nvidia. He said:
“Tesla (TSLA) is the biggest AI opportunity out there. This is the world’s largest artificial intelligence project when it comes to autonomous taxi platforms. And it’s selling at roughly seven times, maybe six times revenues now. So this is a very good example and we think the best example. But other software plays would include Twilio (TWLO), which is selling at two to three times, and Zoom (ZM), which is selling at nearly three times. And these companies either have very high gross margins like Zoom, 80%, or they have low gross margins now, like Tesla was in the 20s, but they’re growing because of the SAS-like model that Tesla has. is developing. They will move from their 20s to their 50s and 60s as we assume, [which is] It was not expected there at all.”
Markets are gearing up for the much-awaited policy decision on rate hike by the United States Federal Reserve, which is expected to be announced on September 20. The latest jobs report shows a continued slowdown in the labor market suggesting the possibility of keeping interest rates on hold. At this level in the upcoming meeting. You can read more about it in our recently published article: Jim Cramer Recommends Selling These 12 Stocks.
According to Cathie Wood, tech stocks will sell now
Cathie Wood of ARK Investment Management
For this article we studied Cathie Wood’s ARK Investment Management’s Q2 2023 portfolio and selected 11 tech stocks in which the hedge fund cut its exposure during the period. The shares are ranked based on the percentage of stake sold by ARK Investment Management during the quarter compared to the ownership position stated earlier.
11. Platika Holding Corp. (NASDAQ:PLTK)
Percentage of stake sold by ARK Investment Management in Q2 2023: 27%
Number of hedge fund holders: 21
Herzliya, Israel-based Playtika Holding Corp. (NASDAQ:PLTK) is a digital entertainment company specializing in the development and publishing of mobile games. Its portfolio included several casual online games with over 28 million monthly active users.
On August 8, Playtika Holding Corporation (NASDAQ:PLTK) released its financial results for the second quarter of 2023. Its revenue declined 3% year-over-year to $643 million, while net income more than doubled year-over-year to $76 million. EPS for the quarter, at $0.21, missed the consensus estimate by $0.04.
Cathie Wood’s ARK Investment Management sold its 27% stake in Playtika Holding Corp (NASDAQ:PLTK) during the second quarter of 2023. The fund still holds 173,417 shares of the company, worth $2.0 million.
10. MercadoLibre, Inc. (NASDAQ:MELI)
Percentage of stake sold by ARK Investment Management in Q2 2023: 27%
Number of hedge fund holders: 77
Founded in 1999, MercadoLibre, Inc. is based in Buenos Aires, Argentina. (NASDAQ:MELI) is Latin America’s leading e-commerce technology company through its primary platforms, MercadoLibre.com and MercadoPago.com. It provides solutions to individuals and companies to buy, sell, advertise and make payments for goods online.
By the second quarter of 2023, Cathie Wood’s ARK Investment Management will own MercadoLibre, Inc. (NASDAQ:MELI) had 43,594 shares, which is 27% less than the number of shares owned last quarter, which is worth about $52 million. The company’s shares, worth more than $3.3 billion, were held by 77 major hedge funds, according to Insider Monkey data.
On August 9, Goldman Sachs acquired MercadoLibre, Inc. Raised the price target for MELI (NASDAQ:MELI) shares from $1910 to $2180 and maintained a ‘Buy’ rating on the shares.
9. Cellebrite Ltd (NASDAQ:CLBT)
Percentage of stake sold by ARK Investment Management in Q2 2023: 28%
Number of hedge fund holders: 22
Petah Tikva, Israel-based Cellebrite DI Ltd. (NASDAQ:CLBT) provides a digital intelligence platform for legally sanctioned investigations that allows users to collect, review, analyze and manage digital data across the investigation lifecycle .
On August 8, Cellebrite Di Ltd. (NASDAQ:CLBT) released its financial results for Q2 2023. Its revenue rose 23% year over year to $77 million, while it generated a net loss of $32 million compared to net income of $33 million. , At -$0.17, its actual EPS for the quarter fell short of the consensus estimate by $0.17.
ARK Investment Management sold its 28% stake in Cellebrite Di Ltd (NASDAQ:CLBT) during the second quarter, bringing its ownership to 363,604 shares. As of June 30, Scott Stewart Miller’s Greenhaven Road Investment Management was the largest hedge fund shareholder with ownership of 3.5 million shares.
8. Nvidia Corporation (NASDAQ:NVDA)
Percentage of stake sold by ARK Investment Management in Q2 2023: 29%
Number of hedge fund holders: 175
Founded in 1993, California-based NVIDIA Corporation (NASDAQ:NVDA) is a leading technology company focused on designing and manufacturing accelerated computing hardware and software products. Its core businesses include gaming, data center, professional visualization, and automotive, with gaming and data center accounting for more than 80% of its revenues.
Analysts are bullish on the future prospects of Nvidia Corporation (NASDAQ:NVDA), with growing demand for its products providing significant top- and bottom-line growth potential for the company. On August 24, Deutsche Bank raised its price target on the chip maker’s shares to $560 from $440, while Truist Securities raised its target price to $668 from $545.
Hedge funds are also bullish on shares of NVIDIA Corporation (NASDAQ:NVDA) as the number of hedge funds owning its shares reached 175 in Q2 2023, compared to 132 in the previous quarter. According to Insider Monkey data, these hedge funds held shares worth a combined $26.0 billion.
7. Altair Engineering Inc. (NASDAQ:ALTR)
Percentage of stake sold by ARK Investment Management in Q2 2023: 30%
Number of hedge fund holders: 16
Troy, Michigan-based Altair Engineering Inc. (NASDAQ:ALTR) is a global technology company that provides software and cloud solutions in the areas of data analytics, product development and high-performance computing.
On August 3, Altair Engineering Inc. (NASDAQ:ALTR) released its financial results for the second quarter of 2023. Its revenue rose 6% year-over-year to $141 million, while net loss declined 34% year-over-year to $22 million. At -$0.28, its EPS missed the consensus estimate by $0.10.
Following the earnings release, Rosenblatt purchased Altair Engineering Inc. Reiterated a ‘Buy’ rating on shares of ALTR (NASDAQ:ALTR) and raised the price target on its shares from $70 to $74.
6. Spotify Technology SA (NYSE:SPOT)
Percentage of stake sold by ARK Investment Management in Q2 2023: 33%
Number of hedge fund holders: 57
Founded in 2006, Stockholm, Sweden-based Spotify Technology SA (NYSE:SPOT) is an audio streaming and media services provider that lets listeners discover, manage and enjoy more than 100 million tracks, 5 million podcast titles and 350,000 audiobooks on its platform. allows for. ,
On July 25, Spotify Technology SA (NYSE:SPOT) released its financial results for Q2 2023. The company managed to add 36 million monthly active users and 10 million premium subscribers to its platform during the quarter, taking the total figure to 551 million. and 220 million respectively.
As of Q2 2023, Spotify Technology SA (NYSE:SPOT) shares were owned by 57 major hedge funds tracked by Insider Monkey, with the total value of shares held by these hedge funds amounting to $1.9 billion. Karthik Sarma’s SRS Investment Management was its largest hedge fund shareholder with ownership of 2.2 million shares worth $354 million.
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Disclosure: None. 11 Tech Stocks to Sell Now According to Cathie Wood Originally published on Insider Monkey.