Cathie Wood’s ARK Invest Swaps Robinhood Shares for Pinterest Despite Stock Slump

Cathie Wood’s Ark Invest has bought Pinterest shares after its stock fell 21%. The firm also sold shares of different firms, including Robinhood.

Ark Invest Buys the Dip in Pinterest After 21% Stock Drop

According to the firm’s latest trade disclosures, Cathie Wood’s Ark Invest bought 521,867 shares of Pinterest Inc. through its flagship funds, including ARKK, ARKW, and ARKF, for about $17.2 million total. That’s after the stock of Pinterest fell 21.8% after it missed Wall Street’s third-quarter earnings expectations.

The investment, despite the short-term slump, suggests confidence in Pinterest’s long-term monetization strategy. The platform reported revenue approximately in line with forecasts but posted weaker-than-expected earnings per share.

Chief Financial Officer Julia Donnelly attributed the miss to “moderating ad spend” in the U.S. and Canada.

Cathie Wood’s purchase follows her strategy of accumulating growth stocks during dips. The firm previously made a similar move in August, accumulating Coinbase shares after it fell by 16%

Ark Invest had to sell some of its shares to make this purchase. It sold 56,095 shares of Robinhood Markets for $7.67 million, and ARK also lowered its holdings in Roku Inc. through the sale of 105,576 shares, valued at approximately $11.2 million.

The rebalancing wasn’t limited to tech and fintech. The firm also trimmed positions in Reddit, Rocket Lab, and several healthcare firms. Of the latter, it sold 87,072 shares of Adaptive Biotechnologies, 20,101 shares of Ionis Pharmaceuticals, and 13,092 shares of Incyte Corp.

Analysts Split Over Pinterest’s Outlook

Wall Street shares different opinions on the stock’s growth. A research firm, Monness Crespi Hardt, downgraded the stock to “Neutral” from “Buy,” citing “uninspiring” results and a “muted” Q4 outlook.

An analyst at the firm, Brian White, warned that a more challenging advertising environment and competition could pressure margins. The PINS stock has, however, seen 4% increase on the open market today.

Analysts outside this company remain more bullish, however. According to data compiled by MarketBeat, Pinterest carries a “Strong Buy” consensus rating based on 22 Buy calls and 4 Holds, with an average target price of $44.33.

Beyond equities, Cathie Wood is extending the firm’s reach deeper into cryptocurrency. Last month, the company filed several applications with the U.S. SEC for a new set of Bitcoin ETFs. The filings include proposals for the ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF.

The filings come days after regulators green-lit the posting of generic listing standards for spot crypto ETFs.