Cathie Wood Makes a $22M Bet on Block After Earnings, Sells Shopify and Palantir

Cathie Wood's ARK Invest exchange-traded funds (ETFs) made another major portfolio reshuffle on August 6, buying more than $22.5 million worth of Block (XYZ) stock after the company reported a strong beat-and-raise quarter. Despite the strong report, Block shares fell 6.2% on Thursday as investors focused on the company's rising AI spending.

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At the same time, Wood trimmed positions in Shopify (SHOP) and Palantir (PLTR). The moves come as Wood continues to reposition its portfolio around companies she believes offer the best long-term growth opportunities.

Let's take a closer look at Wood's biggest trades.

Wood Buys the Dip in Block Stock

According to ARK's daily trade disclosures, Wood purchased 267,676 shares of Block worth about $22.54 million on Wednesday. The fintech company reported adjusted earnings of $1.02 per share, beating Wall Street estimates of $0.87. Revenue rose 9.4% year-over-year to $6.62 billion, also ahead of analysts' expectations.

Block also raised its full-year guidance and highlighted continued strength in both its Cash App and Square businesses, reinforcing investor confidence in its long-term growth.

Additionally, Block also expanded Square's partnership with Google (GOOGL), allowing U.S. food and beverage sellers to appear in Google's Ask Maps and receive orders directly through the platform.

Following these positive catalysts, several analysts raised their price targets on XYZ stock. For instance, BofA Securities analyst Matthew O'Neill raised his price target to $115 from $100 and maintained a Buy rating. He said another earnings beat and higher guidance show the company is executing well after its organizational restructuring.

Shopify Remains ARK's Biggest Sale

On the selling side, ARK reduced its Shopify position by selling 117,172 shares across multiple funds, amounting to about $16.9 million.

The sale continues a series of Shopify reductions this week, suggesting Wood is locking in gains after Shopify's strong rally this year. Over the past three months, SHOP shares have gained nearly 32%.

Wood Trims Palantir Again

Wood also sold 23,907 shares of Palantir, valued at about $3.79 million, across several of its ETFs. Wood has been steadily reducing exposure to the AI analytics platform despite its strong earnings-driven rally. Over the past two trading sessions, PLTR shares have surged 26.9%. The latest sale extends Wood's recent profit-taking in Palantir following the stock's post-earnings surge.

Wall Street's Take on These Stocks

We used the TipRanks Stock Comparison Tool to determine Wall Street's take on the above stocks. Currently, analysts have a Strong Buy rating on XYZ and SHOP shares, reflecting analysts' confidence in their long-term growth outlook. Meanwhile, PLTR shares have a Moderate Buy rating as analysts remain divided over its premium valuation.