On Monday, Cathie Wood’s Ark Invest made significant trades involving CrowdStrike Holdings Inc (NASDAQ:CRWD) and Tesla Inc (NASDAQ:TSLA), despite the turbulent market conditions.
The CrowdStrike Trade
Ark Fintech Innovation ETF (NYSE:ARKF) and ARK Next Generation Internet ETF (NYSE:ARKW) bought a total of 20,219 shares of CrowdStrike, valued at approximately $5.34 million based on the closing price of $263.91. This move follows CrowdStrike’s recent challenges, including a global IT outage last week. CEO George Kurtz attributed the outage to “a defect found in a single content update” and confirmed it was not a security incident. Analysts predict the outage could cost over $1 billion with potential lawsuits looming.
Former hedge fund manager Jim Cramer praised CrowdStrike’s response, highlighting CEO Kurtz’s transparency. “CrowdStrike has unbelievable technology, and it was not their technology that was the problem, it was a sloppy update,” said Cramer.
The Tesla Trade
Ark Invest’s ARKW fund sold 14,859 shares of Tesla, valued at approximately $3.74 million based on the closing price of $251.51. Despite Ark’s typically bullish stance on Tesla, they have been selling shares recently. Cathie Wood maintains a $2,600 target for Tesla, driven by its potential in the autonomous taxi sector. Tesla is set to report its second-quarter earnings on Tuesday.