Cathie Wood”s ARK Invest made strategic moves on January 20 by purchasing shares in Broadcom, BYD, and WeRide. These acquisitions come amid notable market fluctuations and reflect the firm”s evolving investment strategy.
On January 20, ARK Invest bought 32,408 shares of Broadcom, totaling $10.8 million, capitalizing on a 5.4% drop in the stock price. This decline can be attributed to recent regulatory guidance issued by Chinese authorities that targets foreign software for national security reasons, which has affected Broadcom“s operations.
In addition to Broadcom, ARK Invest increased its position in BYD, acquiring 205,748 shares valued at $2.53 million. This purchase comes as BYD continues to outperform Tesla in global vehicle sales. Notably, BYD stocks dipped by 2.2% on the same day ARK made its purchase, indicating a potential buying opportunity amidst market volatility.
Furthermore, ARK Invest expanded its footprint in the autonomous vehicle market by purchasing 577,099 shares of WeRide for $4.9 million. The company focuses on providing autonomous ride-hailing services in Chinese cities like Beijing and Guangzhou. Despite a 4.18% decrease in WeRide“s stock price on the day of the transaction, Wood”s ongoing commitment to self-driving technology remains evident.
In contrast, ARK Invest divested from Kratos Defense, selling 171,871 shares worth $22.12 million across three of its ETFs. This sale occurred despite the defense sector gaining traction due to rising global security concerns, marking a strategic pivot away from defense contractors.
Analysts have rated all four stocks—Broadcom, BYD, WeRide, and Kratos Defense—as “Strong Buy,” with WeRide showing the highest potential upside. This series of trades illustrates ARK Invest”s dynamic approach as it reallocates resources within the technology and electric vehicle sectors.
