ARK Invest Adds CoreWeave and Kratos, Cuts Teradyne and Rocket Lab Holdings

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TLDR

  • ARK Invest, led by Cathie Wood, purchased approximately $19.4 million worth of CoreWeave stock even after it dropped 19% on mixed Q4 earnings.
  • The firm’s most significant transaction was a $23.2 million acquisition of shares in Kratos Defense & Security Solutions.
  • ARK divested $12.9 million in Teradyne shares, extending a recent pattern of cutting back its stake.
  • ARK reduced its position in Rocket Lab following an earnings report that exceeded forecasts, though the stock price declined roughly 5%.
  • Additional trades included selling Roku stock and making a new investment in the biotech company Generate Biomedicines.

On Friday, February 27, Cathie Wood’s ARK Invest executed a series of trades for its portfolios. These transactions encompassed new acquisitions and continued trims in the technology, defense, and biotechnology sectors.

ARK’s most substantial acquisition for the day was in Kratos Defense & Security Solutions. The investment firm purchased 252,169 shares valued at $23.2 million. Kratos specializes in unmanned aerial systems and autonomous defense technology, aligning with ARK’s investment focus on robotics and automation.

Its second-largest purchase was in CoreWeave, a provider of cloud infrastructure for artificial intelligence. ARK acquired 198,980 shares worth an estimated $19.4 million, distributing the purchase across its ARKK and ARKW exchange-traded funds.

CRWV Stock Card

ARK bought CoreWeave shares on a day when the stock price plunged 19%. This decline came after the company released fourth-quarter results that presented robust revenue growth alongside larger-than-anticipated losses and increased capital expenditures.

By buying during the downturn, ARK appears to consider the sell-off a temporary market response rather than an indication of fundamental business issues. CoreWeave supplies AI computing power, a segment experiencing significant demand expansion.

Analysts currently maintain a Moderate Buy consensus rating on the stock. With an average price target of $114.18, based on eleven Buy and eight Hold recommendations, this suggests a potential upside of approximately 43.5% from recent prices.

ARK Reduces Teradyne and Rocket Lab

Regarding sales, ARK sold 38,773 shares of Teradyne, valued at $12.9 million, from several of its ETFs. Teradyne manufactures equipment for testing semiconductors and tools for industrial automation. This sale continues a trend of ARK decreasing its Teradyne holding over the previous week.

ARK also sold 46,921 shares of Rocket Lab, worth about $3.4 million. Rocket Lab had recently announced quarterly earnings that surpassed both profit and revenue estimates, yet its stock finished the Friday session nearly 5% lower.

The company reported vigorous launch operations and an expanding order backlog. However, the inaugural launch of its larger Neutron rocket was delayed until late 2026, a development that likely tempered investor optimism.

Other Moves Across Biotech and Tech

ARK sold 46,389 shares of Roku, valued at $4.3 million, from its ARKK ETF. The firm provided no particular rationale for this sale.

Within the biotechnology sector, ARK purchased 459,525 shares of Generate Biomedicines for $7.4 million via its ARKG ETF. Concurrently, it sold 39,423 shares of Ionis Pharmaceuticals for $3.2 million.

Further sales included 10,590 shares of Deere & Co for $6.6 million and a reduction of 27,334 shares in Guardant Health for $2.7 million.

Smaller-scale adjustments involved cutting 205,211 shares of PagerDuty for $1.5 million and acquiring 14,097 shares of Brera Holdings for approximately $15,600.

The purchases of CoreWeave and Kratos represented the two biggest individual trades ARK conducted on February 27, together amounting to over $42 million.