TLDR
- ARK Innovation ETF bought 97,420 Class A and 97,420 Class C Alphabet shares, worth ~$162 million, making up 2.33% of the portfolio
- Berkshire Hathaway bought $10 billion in Alphabet stock at a ~6% discount under new CEO Greg Abel
- ARK bought a total of 267,582 Alphabet shares worth ~$95.9 million across multiple funds on June 3
- ARK also bought shares in Alibaba and Meta, while trimming its AMD position by ~$39 million
- Alphabet shares are down 4.6% over two days after an ~$85 billion equity offering, but up 113% over the past year
Both Cathie Wood and Warren Buffett’s firms have bought into Alphabet, a company that rarely appeals to both growth and value investors at the same time.
Berkshire Hathaway bought $10 billion in Alphabet common stock on Monday at roughly a 6% discount. It was one of the first major deals made under Buffett’s successor, Greg Abel.
ARK Invest followed days later. Its flagship ARK Innovation ETF bought 97,420 Class A and 97,420 Class C Alphabet shares on Wednesday, June 3. The total stake was valued at just over $162 million at Wednesday’s close, making up 2.33% of the ETF’s portfolio.
Why Both Firms Bought at the Same Time
Alphabet’s stock dropped about 4.6% over two trading sessions. The dip came after the company announced plans to raise around $84.75 billion to fund AI infrastructure and computing capacity.
That pullback gave both firms a chance to buy in at lower prices. ARK bought a total of 267,582 Alphabet shares across multiple funds, worth roughly $95.9 million.
ARK’s other ETFs also joined in. Its Autonomous and Robotics Technology, Next Generation Internet, and Space and Defense Innovation funds all picked up Alphabet shares on the same day.
Alphabet has gained 113% over the past year. Investors have been drawn to its Gemini AI chatbot and custom tensor processing unit chips. Wall Street holds a Strong Buy consensus on the stock, with an average price target of $427.89, implying about 19% upside.
ARK’s Other Moves on June 3
Beyond Alphabet, ARK bought 30,273 shares of Alibaba worth around $4 million. The Chinese tech company’s shares were down 2.76% on Wednesday and are roughly 11% lower so far this year.
ARK also picked up 5,608 shares of Meta Platforms, valued at about $3.35 million. Meta was up more than 4% that day but remains down about 10% year-to-date. Wall Street gives Meta a Strong Buy rating with around 32% upside potential.
On the sell side, ARK trimmed its position in Advanced Micro Devices, offloading 74,838 shares worth approximately $39 million. AMD has surged more than 140% year-to-date on strong demand for its AI chips.
ARK also reduced positions in Baidu and Teradyne, selling roughly $14.6 million and $18.3 million worth of shares respectively.
Despite the AMD sales, Wall Street still holds a Strong Buy consensus on the stock. The average analyst price target of $477.33 is currently below where the stock has been trading.
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