Ark Invest, under the direction of Cathie Wood, executed a series of important trades on Wednesday, targeting prominent players such as Netflix Inc. (NASDAQ: NFLX), Tempus AI Inc. (NASDAQ: TEM), and Pinterest Inc. (NYSE: PINS). These transactions unfolded amid recent corporate earnings releases and market responses, positioning Ark Invest to leverage specific opportunities in the evolving technology and innovation space.
Within Ark’s Next Generation Internet ETF (BATS: ARKW), the fund acquired 83,368 shares of Netflix, amounting to approximately $7.11 million. This move follows Netflix’s recently disclosed quarterly results, which presented a mixed picture. Specifically, Netflix reported an earnings per share figure of 56 cents, surpassing expectations. However, its guidance for the first quarter did not meet analyst estimates, prompting a decline in the company’s share price. Netflix closed Wednesday at $85.36, marking a 2.18 percent decrease from the previous session. Ark’s decision to purchase additional Netflix shares indicates a continued confidence in the streaming giant’s long-term potential despite near-term guidance challenges.
Similarly, Ark’s Genomic Revolution ETF (BATS: ARKG) and Innovation ETF (BATS: ARKK) collectively bolstered their positions in Tempus AI. Together, these funds purchased 89,501 shares, with a combined value estimated around $5.85 million. This increased investment follows Tempus AI’s recent announcement of substantial growth, particularly in its diagnostics segment. The company reported revenues of $955 million for the period, reflecting a significant 111 percent year-over-year increase, based on preliminary fourth-quarter and full-year 2025 results. Despite this robust performance, Tempus AI's stock experienced a modest decline on the day, closing at $65.32, down 2.19 percent. Ark’s accumulation underscores its interest in the company’s expanding diagnostic capabilities and overall growth trajectory.
Conversely, Ark’s ARKW fund moved to reduce exposure to Pinterest, selling 118,823 shares valued at approximately $2.97 million. Pinterest’s recent projections revealed anticipated fourth-quarter revenue between $1.31 billion and $1.34 billion, slightly trailing consensus expectations around $1.34 billion. Additionally, the company forecasted adjusted EBITDA in the range of $533 million to $558 million. Pinterest’s share price responded with a 1.58 percent drop, closing Wednesday at $24.99. Ark’s decision to divest a portion of its Pinterest holdings reflects a strategic reassessment in light of these financial updates.
Beyond these headline moves, further notable transactions included Ark Genomic Revolution ETF’s sale of 21,286 shares of Beam Therapeutics Inc. and Ark Innovation ETF’s selling of 113,907 shares, though the latter’s target is not specified. Additionally, the ARKQ fund purchased 111,439 shares of WeRide Inc., highlighting ongoing interest in autonomous vehicle technology. Meanwhile, ARKW reduced its stake in GitLab Inc. by 87,999 shares, and the ARKX fund acquired 8,817 shares of Trimble Inc., indicating targeted realignments within Ark’s broader portfolio.
According to Benzinga Edge Stock Rankings, Tempus AI’s stock momentum ranks in the 80th percentile, supported by long-term price trend indicators. This metric aligns with Ark’s recent purchasing activity, emphasizing confidence in the company’s expansion and market positioning.
These transactions demonstrate Ark Invest’s dynamic approach to portfolio management, involving both acquisitions and divestitures based on recent corporate performance and market conditions. While Netflix’s guidance posed a cautionary signal, Ark’s team remains bullish on the service’s future, balancing that stance by trimming positions in other social media entities like Pinterest where outlooks show moderate shortfalls.
Key Points:
- Ark increased its stake in Netflix following mixed quarterly results, buying over 83,000 shares despite the company’s cautious first-quarter guidance.
- The firm acquired nearly 90,000 shares of Tempus AI across two ETFs, capitalizing on the company’s significant revenue growth in diagnostics.
- Ark sold more than 118,000 shares of Pinterest, reacting to slightly weaker-than-expected revenue forecasts and adjusted EBITDA outlook.
- Additional portfolio changes included sales of Beam Therapeutics and GitLab shares, and purchases of WeRide and Trimble shares, reflecting adjustment across multiple innovative sectors.
- Netflix’s reduced first-quarter guidance introduces uncertainty regarding near-term revenue and subscriber growth, influencing stock volatility.
- Despite strong growth figures, Tempus AI’s stock price declined, indicating potential market skepticism or profit-taking pressures.
- Pinterest’s revenue projections falling short of estimates may signal challenges in advertising revenue or user engagement trends.
- Ongoing shifts in Ark’s holdings suggest continued exposure to technology sector volatility and the impact of evolving market sentiment.