Ark buys drug discovery and protein testing companies
Prominent asset manager Cathie Wood, managing director of Ark Investment Management, bought a drug discovery technology stock on Wednesday, again racked up a large cryptocurrency stock and sold again shares of a major manufacturer of electric vehicles.
It also continued its purchases of 3D printing stocks. (All valuations are as of Wednesday’s close.)
Twist Bio, South San Francisco, states on its investor relations page that the core of its platform “is proprietary technology that pioneers a new method of making synthetic DNA by ‘writing’ DNA onto a silicon chip.
“We are leveraging our unique technology platform to manufacture a wide range of synthetic DNA products, including synthetic genes, tools for NGS sample preparation, and antibody libraries for discovery and drug development.
Ark Genomic Revolution ETF (ARKG) – Get the ARK Genomic Revolution ETF Report bought back 221,118 shares of SomaLogic (SLGC) , the Boulder, Colorado, biotechnology company, valued at $1.8 million. SomaLogic produces protein-based tests that enable individuals and healthcare providers to better prevent and assess disease.
Ark Genomic Revolution snatched 150,051 shares of Burning Rock Biotech (BNR) valued at $1.4 million.
Ark Space Exploration & Innovation ETF (ARKX) – Get the ARK Space Exploration & Innovation ETF Report purchased 35,979 shares of 3D Systems (JDD) – Get the 3D Systems Corporation reportworth $613,802.
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Ark funds bought 96,591 shares of Coinbase (PIECE OF MONEY) , the largest cryptocurrency exchange in the United States, valued at $18.9 million. In January, Ark said bitcoin could hit $1 million by 2030. It recently traded at $47,048.
Ark Next Generation Internet ETF (ARKW) – Get the ARK Next Generation Internet ETF Report sold 2,978 shares of electric vehicle maker Tesla (TSLA) – Get the Tesla Inc report, valued at $3.3 million. Wood said her Tesla stock sales were designed to take profits and she still believed in the company. Tesla remains largest holding in Wood’s flagship Ark Innovation ETF (ARKK) – Get the ARK Innovation ETF report.
During this time at Ark’s March 21 Newsletterhe noted that “As of March 2022, approximately one-third of companies that have gone public through initial public offerings (IPOs) in the past four years are trading below their previous private valuations.”
As to the significance of this trend, “in our view, this data suggests that public market investors are rejecting late-stage and IPO valuations set by venture capitalists and investment bankers.”
Earlier this year, when Wood’s publicly traded tech stocks fell sharply, she noted the disparity between the valuations of publicly traded and publicly traded tech stocks. This created some interesting opportunities to buy the publicly traded stocks, Wood said.
Now private valuations are also falling, says Ark analyst Maximilian Friedrich. “Data from private secondary markets…suggests that startup valuations are reacting to the decline in public markets,” he wrote in a commentary.
Secondary market Forge reported that prices of companies trading on its platform fell about 10% in both the fourth quarter and February.
Additionally, signs of interest in selling private stocks totaled 60%, the highest level since the first quarter of 2020, when the Covid crisis hit. It’s also a sharp reversal from the 60% indication of interest from buyers in 2021, Friedrich said.