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Market News

Cathie Wood’s ARK Invest Extends Cloudflare Bet, Trims Palantir & Shopify

ARK Invest made Cloudflare its largest purchase on August 12 while trimming Palantir, Shopify, Twist Bioscience, and other holdings, with no semiconductor trades disclosed during the session.

Written By Divya Mistry
Published 27 minutes ago·Updated less than a minute ago
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Cathie Wood’s ARK Invest Extends Cloudflare Bet, Trims Palantir & Shopify
Catherine Duddy Wood, cofounder and CEO of Ark Invest
AI Summary
Show
ARK Invest’s purchase of Cloudflare and biotech stocks reflects its rotation across tech and healthcare themes, driven by innovation and growth potential
The firm’s selling of Palantir and other stocks suggests a strategy to manage portfolio weights and lock in profits after significant gains, rather than a bearish view
The absence of semiconductor trades in the August 12 disclosure indicates ARK’s dynamic approach to investing, with a focus on rotating across themes rather than concentrating on a single sector

ARK Invest bought Cloudflare and several biotech stocks on August 12 while trimming Palantir, Shopify, and other holdings, according to the firm’s latest trade disclosures. The moves span several ARK ETFs and show the firm’s continued rotation across technology, healthcare, and other disruptive-innovation themes.

ARK Buys Cloudflare in Its Largest Trade

ARK’s biggest purchase of the day was Cloudflare (NYSE: NET), with the ARK Innovation ETF (ARKK) buying 31,974 shares, equal to about 0.16% of the fund.

The purchase extends ARK’s recent accumulation of Cloudflare, which it also bought earlier in the week. The company has attracted attention from crypto investors because it is building stablecoin payment infrastructure for the “agentic internet” through the open x402 protocol it co-developed with Coinbase.

Cloudflare remains a broad internet-infrastructure company rather than a crypto-specific business, however, and ARK’s trade disclosure does not provide a reason for the purchase. Any connection to its stablecoin strategy is therefore an interpretation rather than a stated rationale from ARK.

Biotech Rounds Out the Buying

The remainder of ARK’s buying on August 12 leaned toward healthcare and genomics. Through the ARK Genomic Revolution ETF (ARKG), the firm bought 190,403 shares of Perceptive Capital Solutions Corp. (FRNM), equal to about 0.13% of the fund.

ARK also added Cerus (CERS) and Intellia Therapeutics (NTLA) across ARKK and ARKG, as well as Schrödinger (SDGR) through ARKG. The buying gives the day’s activity a different character from the semiconductor-heavy trades disclosed earlier in the week, with healthcare and biotechnology accounting for much of the remaining purchase activity.

ARK Keeps Selling Palantir Into Its Rally

On the sell side, Palantir Technologies (Nasdaq: PLTR) was the standout. ARK sold 11,134 shares through ARKK, a position worth roughly $2 million based on recent prices.

The sale continues a recent pattern of trimming Palantir after the stock’s sharp post-earnings rally. The company reported second-quarter revenue growth of 93% year over year on August 3, sending its shares about 29.5% higher the following day. ARK subsequently sold roughly $17 million of Palantir shares on August 4 and 5, trimmed the position again on August 10 and reduced it further on August 12.

The selling should not automatically be interpreted as a bearish call. ARK’s actively managed funds routinely trim positions following significant gains to manage portfolio weights. Palantir also remains among the larger holdings across ARK’s ETFs. Any interpretation of the sales as a negative view on Palantir is not stated by the firm.

ARK’s other reductions included 17,025 Shopify (SHOP) shares, a combined 47,842 Twist Bioscience (TWST) shares across ARKK and ARKG, 21,482 shares of 10x Genomics (TXG), 3,932 Deere & Co. (DE) shares, a small Snowflake (SNOW) sale, and additional trimming of Brera Holdings (SLMT) across several funds.

A Pause in the Week’s Semiconductor Buying

The August 12 trades are notable partly because of what they did not include: semiconductor stocks. Earlier in the week, ARK bought about $26.6 million of Nvidia (NVDA) across five ETFs and roughly $16.2 million of Broadcom (AVGO), along with Teradyne (TER), on August 10. Those purchases followed earlier buying of Taiwan Semiconductor Manufacturing (TSM) and formed part of a broader semiconductor push.

No semiconductor trades appeared in ARK’s August 12 disclosure. Instead, the firm directed its buying toward Cloudflare and healthcare names while trimming several software and technology holdings. The one-session pause does not establish a change in ARK’s semiconductor strategy, but it does show that the firm’s daily trading activity is rotating across themes rather than remaining concentrated in AI chips.

No New Crypto-Equity Trades

For crypto investors, Cloudflare was the closest connection to the digital-asset sector in the August 12 activity. ARK made no trades in Coinbase, Circle, BitMine, Robinhood, or Bullish during the session. That follows a period of more active trading in crypto-linked equities, including purchases of Coinbase and Circle and adjustments to its position in BitMine.

Cloudflare’s connection to stablecoin payments makes the purchase relevant to crypto readers, but it should not be treated as a direct crypto-equity purchase. The company generates revenue across a much broader internet-infrastructure business, and ARK has not disclosed that its August 12 purchase was driven by the company’s stablecoin initiatives.

How the Trades Fit ARK’s Recent Strategy

The August 12 disclosure comes after a particularly active period for ARK. On August 10, the firm bought Nvidia, Broadcom and Teradyne, extending a series of semiconductor purchases that also included Taiwan Semiconductor. The previous session therefore showed a clear concentration in AI and semiconductor infrastructure.

August 12 looked different. Cloudflare was the largest individual purchase, followed by biotechnology and healthcare names, while Palantir, Shopify and other stocks were trimmed. The contrast highlights the breadth of ARK’s investment approach. Its actively managed ETFs rotate among AI, software, fintech, biotechnology, space and crypto-linked companies rather than maintaining a fixed allocation to one theme.

What the Latest Trades Show

The August 12 disclosure shows ARK adding selectively while continuing to take profits from several stocks that have performed strongly. Cloudflare was the standout purchase, while a cluster of biotech names rounded out the buying. On the other side, Palantir remained the most notable sale, alongside Shopify, Twist Bioscience, 10x Genomics, and Deere.

The absence of semiconductor trades is also notable given ARK’s aggressive chip buying earlier in the week, but one day’s disclosure is not enough to establish a change in the firm’s longer-term positioning.

ARK’s trade disclosures do not state the rationale for individual transactions. The trades are portfolio actions by ARK Invest and should not be interpreted as recommendations to buy, sell or hold any of the securities mentioned.

Also Read: IREN Stock Gains 9% as AI Infrastructure Stocks Gain Momentum

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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