Cathie Wood Buys Baidu, Alibaba; Exits BREA in Ark Portfolio Shift

Ark Invest Shifts Strategy: Cathie Wood Sells Roku, Exits BREA, and Invests in Alibaba and Baidu Amid China Tech Bet

  • Cathie Wood moves major capital toward Chinese tech by buying shares of Baidu and Alibaba.
  • Ark Invest reduces its stake in Roku and completely exits a $69 million position in BREA.
  • The changes reflect a strategic shift to invest in China’s technology sector despite regulatory concerns.
  • Alibaba and Baidu are seen as key players in Artificial Intelligence and cloud computing.
  • The adjustments allow Ark Invest to rebalance risk and free up capital for these new investments.

Cathie Wood of Ark Invest has shifted the firm’s portfolio, selling shares in Roku and fully liquidating a $69 million holding in BREA while adding new positions in Chinese tech giants Baidu and Alibaba. The move marks a notable change as Wood steers investments toward China’s technology sector at a time of ongoing regulatory uncertainty.

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According to figures referenced by Ark Invest, Alibaba shares were acquired near $182.78 each, with the company holding a $425 billion market cap and carrying a “Strong Buy” rating among analysts. Analyst price targets for Alibaba suggest a potential upside of around 4.8%. At the same time, Baidu shares were bought at approximately $137.44 per share, with the stock rated as a “Moderate Buy,” even though the analyst target stands below its current price.

The Ark team trimmed its position in Roku as shares traded near $103.57, despite the company’s ongoing “Moderate Buy” consensus and a $108.71 price target. The exit from BREA occurred at $24.72 per share, closing out a sizeable investment in a stock that has experienced wide price swings and low trading volume.

The decisions indicate confidence in a recovery or growth story for China’s leading technology firms. Alibaba holds $416 billion in cash and a total debt of $232 billion, while Baidu maintains $142 billion in cash and $102 billion in debt. Both companies are investing in artificial intelligence and cloud computing, which are areas considered crucial for future expansion.

The Ark Invest portfolio changes were implemented across several of its funds. The ARKK ETF now trades at $89.22 and contains 48 separate holdings, reflecting a broad strategic adjustment rather than a narrow or isolated decision.

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