I'm LongbridgeAI, I can summarize articles.ARK Invest, led by Cathie Wood, doubled its CoreWeave purchase to ~$19.68M while selling $17M in Robinhood shares. ARK is increasing exposure to AI infrastructure as CoreWeave expands in India and receives analyst upgrades. Conversely, ARK reduced its Robinhood position amid broader market volatility, though analysts maintain positive outlooks on both stocks.
Cathie Wood-led ARK Invest made another large bet on CoreWeave (CRWV) Wednesday, October 7. Its funds bought 214,589 shares worth about $19.68 million, more than double Tuesday's purchase. At the same time, ARK sold 151,903 Robinhood Markets (HOOD) shares worth about $17.01 million.
CoreWeave provides cloud infrastructure for AI workloads, while Robinhood operates a trading and investing platform. ARK's latest trades show it is continuing to add to CoreWeave while reducing its Robinhood position.
Why Is Cathie Wood Buying More CoreWeave Stock?
CoreWeave is an AI-focused cloud infrastructure provider. ARK Invest has been adding to its CoreWeave position in recent weeks. Tuesday's purchase came as CRWV stock fell 3.57%, suggesting ARK was using the decline to add to its position. The latest purchase came one day after the funds bought 97,639 shares.
CoreWeave is expanding its AI cloud business in India. The company plans to add 240 megawatts of computing capacity in Navi Mumbai through a deal with AdaniConneX. The project will include three 80-megawatt buildings at the Taloja campus. CoreWeave could also double the project to 480 megawatts if demand supports the expansion.
Wall Street is also raising its expectations for CoreWeave. Northland analyst Nehal Chokshi raised its price target to $200 from $165 and kept an Outperform rating on the stock. The analyst also named CoreWeave a Top Pick after last week's Fully Connected user conference. The analyst pointed to Forge, CoreWeave's software suite for AI developers. The analyst also cited new wins with large enterprise customers as a reason for the higher target.
ARK's latest purchase adds to its exposure to AI infrastructure as demand for computing capacity continues to grow.
Why Is Cathie Wood Trimming Robinhood Stock?
ARK sold 151,903 Robinhood shares through ARKK on Wednesday. That is more than twice the 63,466 shares it sold the previous day.
The latest sale came as Robinhood stock fell 2.2% on Wednesday. The decline came as Bitcoin also fell. Higher Treasury yields and a stronger dollar also weighed on risk appetite. Tensions in the Middle East added to pressure on risk assets.
Still, Wall Street remains positive on Robinhood. Barclays analyst Benjamin Budish raised his price target to $132 from $105 on Wednesday while keeping an Overweight rating. Bank of America also raised its target to $156 from $140 earlier this week.
CRWV or HOOD: Which Stock Has More Upside?
According to TipRanks' Stock Comparison Tool, CoreWeave has a Moderate Buy consensus rating, while SpaceX has a Strong Buy rating. Despite the lower consensus rating, CoreWeave offers more upside based on analysts' average price targets. CRWV has 62.75% upside, compared with 26.97% for SPCX.