In a notable shift in its investment strategy, Ark Invest has sold a portion of its stake in cryptocurrency exchange Coinbase (NASDAQ:), while also increasing its stake in the trading company. Robinhood financial services. The move reflects a change in the fund’s approach to managing its cryptocurrency-related portfolio in a market that is undergoing significant regulatory changes.
On Monday, Ark Invest sold about $5.3 million in Coinbase stock, for a total of 43,956 shares. The sale comes as Coinbase shares hit a high of $121.67, a level not seen in more than a year. Despite that high, the fund has gradually reduced its position in Coinbase throughout the year, including a significant sale of $103 million in July, and has also trimmed its investment in Grayscale Trust by selling about $3 million in shares.
Ark Invest’s decision to lighten its Coinbase stake is part of a broader strategy that has seen the fund pivot to other fintech companies like SoFi (NASDAQ:), while navigating the money market landscape Electronics are developing. The fund’s management appears to be responding to the increasing regulatory scrutiny faced by industry players, including Binance, by diversifying its portfolio.
In contrast to its Coinbase divestment, Ark has strengthened its position in Robinhood. The investment went through the Ark Fintech Innovation ETF and the ARK Next Generation Internet fund. The decision comes even as Robinhood’s stock hasn’t shown strong growth this year and has seen a recent decline. However, Ark Invest recognizes the potential in Robinhood’s planned expansion into the EU and UK markets and has chosen to invest with an eye on future opportunities.
Detailed information about InvestingPro
In light of Ark Invest’s recent portfolio adjustments, a closer look at real-time data and insights from InvestingPro can provide additional context for investors. For Coinbase (COIN), three analysts have revised their earnings upward for the upcoming period, suggesting a potential positive change in future performance. However, the stock is currently in overbought territory according to RSI, suggesting caution may be warranted despite its significant gains last week. For more detailed information, investors can refer to the additional 12 InvestingPro Tips available for Coinbase at InvestingPro.
Turning to Robinhood (HOOD), management’s aggressive share buybacks and rapid revenue growth are notable. Analysts are also expecting net income growth this year, in contrast to two analysts who revised their earnings downward for the upcoming period. Robinhood does not pay dividends to shareholders, which could affect investors looking for income-producing stocks. Additional details can be found in 10 InvestingPro Tips for Robinhood, available upon registration.
InvestingPro data for Coinbase shows a market cap of $30.65 billion and a negative P/E ratio, reflecting the company’s current lack of profitability. However, the stock experienced a 1-week total return of 13.54% and a 1-month total return of 69.21%, demonstrating strong recent performance.
For Robinhood, the market cap is at $7.4 billion, with a similarly negative P/E ratio. The company saw revenue growth of 32.29% over the past twelve months to Q3 2023, which may interest investors focused on growth metrics.
Investors can take advantage of the Cyber Monday special sale on InvestingPro subscriptions, right now with up to 55% off. Also, use coupon codes sfy23 will take an additional 10% off a 2-year InvestingPro+ subscription. This offering is a great opportunity for investors to access a wealth of expert insights and metrics to guide their investment decisions.
This article was created and translated with the help of AI and has been reviewed by an editor. For more information, see our Terms & Conditions.