Notable investor Cathie Wood, chief executive of Ark Investment Management, bought some of her familiar stocks and purchased a storied U.S. automaker for the first time Monday.
Wood is doubling down on some of her holdings while technology stocks are crumbling. She has said the decline represents a buying opportunity.
All the valuations below are from Monday’s close.
Ark Autonomous Technology & Robotics ETF (ARKQ) bought 568,631 shares of Matterport (MTTR) , which provides three-dimensional virtual tours. The stock was valued at $2.37 million.
Ark funds purchased 72,339 shares of Coinbase (COIN) , the largest U.S. cryptocurrency exchange, valued at $6 million. Ark funds snatched 370,562 shares of DraftKings (DKNG), an online sports gambling company, valued at $4.1 million.
GM Purchase
And for the first time, Wood bought auto titan General Motors (GM). Ark Autonomous Technology snagged 158,187 shares, valued at $6 million.
On the selling side, Ark Innovation ETF (ARKK) dumped 15,862 shares of electric vehicle giant Tesla (TSLA), valued at $12.5 million.
Wood has said in the past that her sales of the stock merely represent profit-taking and that she still believes in the company. Tesla still ranks as the No. 1 holding of Ark Innovation.
Ark Next Generation Internet ETF (ARKW) unloaded 1,279,189 shares of Nano Dimension (NNDM), an Israeli producer of technology solutions for manufacturing, valued at $3.3 million.
Morningstar’s View on GM
As for GM, Morningstar analyst David Whiston likes it too. He puts fair value for the stock at $70, compared to a recent quote of $39.49.
In light of economic conditions, GM’s first quarter turned out pretty well, he wrote in a commentary. “We are not changing our GM fair value estimate following what we see as a solid first quarter and one that could have been much worse, given U.S. inflation, high commodity costs, and ongoing supply chain issues reducing vehicle production,” Whiston said.
With those headwinds, “we were concerned GM would lower its guidance,” he said. But it didn’t change its adjusted EBIT (earnings before interest and taxes) or its adjusted automotive cash flow estimate.
Looking at the company overall, “we see GM with a competitive lineup in all segments, combined with a reduced cost base, finally enabling the firm to have the scale to match its size,” Whiston said.
“We think GM's earnings potential is excellent because the company has a healthy North American unit and a nearly mature finance arm with GM Financial.”
