Key Takeaways
- ARK Invest added approximately $19.4M in CoreWeave shares following a sharp 19% decline after the company’s Q4 earnings report
- The firm’s most substantial transaction was a $23.2M acquisition of Kratos Defense & Security Solutions stock
- Teradyne faced a $12.9M sell-off from ARK, extending the fund’s recent pattern of position reduction
- Despite Rocket Lab exceeding earnings forecasts, ARK decreased its holdings as shares dropped roughly 5%
- Additional portfolio adjustments included offloading Roku and establishing a position in Generate Biomedicines
On Friday, February 27, Cathie Wood’s ARK Invest executed a series of strategic portfolio adjustments. These transactions encompassed fresh acquisitions and ongoing position trims spanning technology, defense, and biotechnology sectors.
Kratos Defense & Security Solutions emerged as the day’s most significant acquisition. The investment firm purchased 252,169 shares valued at $23.2 million. Kratos specializes in unmanned aerial systems and autonomous defense technology, aligning perfectly with ARK’s investment thesis around robotics and automation.
Securing the second spot among purchases was CoreWeave, a company specializing in AI-powered cloud infrastructure. ARK accumulated 198,980 shares totaling approximately $19.4 million, distributed between its ARKK and ARKW exchange-traded funds.
CoreWeave, Inc. Class A Common Stock, CRWV
The CoreWeave acquisition occurred during a session where shares plummeted 19%. This decline followed the company’s fourth-quarter earnings release, which demonstrated robust revenue growth but simultaneously revealed expanding losses and capital expenditure levels that exceeded market expectations.
ARK’s choice to accumulate shares during this downturn indicates the investment firm interprets the selloff as a temporary market overreaction rather than an indication of fundamental business challenges. CoreWeave operates in the AI computing infrastructure space, a sector experiencing accelerating demand.
CoreWeave maintains a Moderate Buy rating among Wall Street analysts. The consensus price target of $114.18 suggests potential upside of approximately 43.5% from current trading levels, supported by eleven Buy recommendations and eight Hold ratings.
Teradyne and Rocket Lab See Position Reductions
Regarding divestments, ARK disposed of 38,773 Teradyne shares valued at $12.9 million across several ETFs. Teradyne manufactures semiconductor testing systems and industrial automation equipment. This transaction continues ARK’s recent trend of scaling back its Teradyne exposure.
The firm also liquidated 46,921 Rocket Lab shares worth approximately $3.4 million. This occurred despite Rocket Lab delivering quarterly financial results that surpassed both earnings per share and revenue projections, though shares nonetheless declined roughly 5% during Friday’s trading session.
Rocket Lab showcased robust launch operations and an expanding order backlog. Nevertheless, the announcement that its larger Neutron rocket’s inaugural launch had been postponed to late 2026 may have tempered investor optimism.
Additional Portfolio Adjustments in Biotech and Technology
ARK divested 46,389 Roku shares valued at $4.3 million from its ARKK fund. The rationale behind this sale was not publicly disclosed.
Within the biotechnology sector, ARK acquired 459,525 Generate Biomedicines shares worth $7.4 million via its ARKG ETF. Simultaneously, the firm sold 39,423 Ionis Pharmaceuticals shares for $3.2 million.
ARK divested 10,590 Deere & Co shares for $6.6 million and reduced its Guardant Health position by 27,334 shares valued at $2.7 million.
Minor transactions included a reduction of 205,211 PagerDuty shares worth $1.5 million and an acquisition of 14,097 Brera Holdings shares for approximately $15,600.
The CoreWeave and Kratos transactions represented ARK’s two most substantial individual trades executed on February 27, collectively exceeding $42 million in deployment.
