Cathie Wood Dumped Roku and Robinhood This Week – Her New Bets Tell You Exactly Where Growth Money Is Moving Next

(SeaPRwire) –

By: Christian Pierce

Growth investors have been stuck in limbo for most of 2024. They chase short-term news rallies that fizzle out in days. They hold onto winners too long, only to give back all gains. ARK Invest’s June 18 trades cut through that noise. They address a core pain point every portfolio manager grapples with right now: when to lock in gains before a catalyst runs out, and where to deploy capital for the next 12 to 24 months.

On June 18, ARK sold 275,572 Robinhood shares through its ARK Innovation ETF, worth $26.65 million. The sale came right after Robinhood announced a 10% workforce cut of 290 full-time roles, a move that lifted its share price and drew analyst price target upgrades.
Robinhood Markets, Inc., HOOD

ARK also sold between 239,267 and 561,800 Roku shares across ARKK, ARKW, and ARKF, worth between $33 million and $77.57 million depending on fund breakdown. The sales came after Fox agreed to buy Roku in a $22 billion deal at $160 per share, pushing Roku’s price close to that fixed ceiling with no remaining near-term upside.
ARK redirected those proceeds to high-conviction growth picks. Its largest buy was 41,138 Eli Lilly shares through its ARK Genomic Revolution ETF, worth $46.18 million, purchased after the drugmaker’s stock pulled back. Lilly recently acquired neuroscience firm 4E Therapeutics, which develops non-opioid chronic pain treatments, adding a new pipeline beyond its existing obesity and diabetes drug lines. Next was 111,799 Coinbase shares across multiple funds, worth $18.92 million, bought as Coinbase rolls out tokenized U.S. stocks for international users and AI-driven investing tools, shifting away from its pure crypto exchange identity. ARK also added $17.68 million in Block shares, plus smaller biotech positions.
Earlier that same week, ARK built a major post-IPO position in SpaceX, buying nearly 3.3 million shares worth $531 million by the end of its first trading day. In a separate SEC filing that week, Elon Musk exercised stock options to acquire roughly 303.96 million Tesla shares at a $23.34 strike price, surrendering around 17.53 million shares to cover a $7.09 billion tax bill. Musk now holds approximately 699.58 million Tesla shares, representing a 19.9% voting stake. Tesla remains ARKK’s largest holding at 9.50%, followed by Robinhood at 4.93%, CRISPR Therapeutics at 4.87%, Tempus AI at 4.83%, and SpaceX at 4.71%.

The entire trade rotation follows a simple, refined rule ARK has used consistently through 2023 and 2024. It exits positions where all near-term upside is already fully priced in. Roku has no room to grow above the $160 fixed acquisition price from Fox. Robinhood’s layoff-driven rally has no immediate follow-up catalyst to push shares higher in the next six months. It moves freed-up capital to positions where underappreciated catalysts are still unfolding. Eli Lilly’s new chronic pain pipeline has barely been factored into most sell-side analyst price targets. Coinbase’s expansion into traditional financial services is still being dismissed by bearish investors who only see it as a crypto play. SpaceX’s Starlink and commercial launch revenue streams are still in early growth stages, with years of market share gains ahead. This is not a random bet on unproven speculative names. It is a clear, actionable signal for all growth investors: stop chasing already played-out news catalysts, and shift 15 to 20% of your growth portfolio to underpriced companies with visible multi-year revenue pipelines.

Author bio: Christian Pierce, chief financial columnist and markets commentator with 12 years covering disruptive growth investment strategies.