Key Highlights
- ARK Innovation ETF acquired 97,420 shares each of Class A and Class C Alphabet stock, totaling approximately $162 million and representing 2.33% of its holdings
- Under new leadership from CEO Greg Abel, Berkshire Hathaway purchased $10 billion worth of Alphabet shares at approximately 6% below recent prices
- On June 3, ARK accumulated 267,582 Alphabet shares across its various funds, totaling roughly $95.9 million in value
- ARK simultaneously acquired stakes in Alibaba and Meta while reducing its AMD holdings by approximately $39 million
- Following an equity offering of roughly $85 billion, Alphabet’s shares declined 4.6% over a two-day period, though they remain up 113% year-over-year
In a notable convergence of investment philosophy, both Cathie Wood’s firm and Warren Buffett’s investment vehicle have taken significant positions in Alphabet—a rare instance where the tech giant simultaneously attracts both growth-oriented and value-focused institutional investors.
On Monday, Berkshire Hathaway made headlines by acquiring $10 billion worth of Alphabet common shares at approximately 6% below prevailing market prices. This transaction marked one of the most significant investments executed under the guidance of Greg Abel, who has stepped into the role as Buffett’s successor.
Just days afterward, ARK Invest joined the buying spree. On Wednesday, June 3, the firm’s flagship ARK Innovation ETF purchased 97,420 shares of both Class A and Class C Alphabet stock. Based on Wednesday’s closing prices, the combined position was valued at slightly more than $162 million, accounting for 2.33% of the ETF’s total portfolio allocation.
The Timing Behind These Coordinated Purchases
Alphabet’s stock experienced a decline of approximately 4.6% across two consecutive trading days. This downturn followed the company’s announcement of plans to secure roughly $84.75 billion in capital to expand its AI infrastructure and enhance computing capabilities.
This price retreat created an attractive entry point for both investment firms. Across its suite of exchange-traded funds, ARK accumulated a combined total of 267,582 Alphabet shares, representing an investment of approximately $95.9 million.
Multiple ARK funds participated in the buying activity. The firm’s Autonomous and Robotics Technology ETF, Next Generation Internet ETF, and Space and Defense Innovation ETF all added Alphabet positions during the same trading session.
Over the trailing twelve months, Alphabet has delivered impressive returns of 113%. Market enthusiasm has been driven by the company’s Gemini AI chatbot platform and proprietary tensor processing unit chips. Analysts maintain a Strong Buy consensus rating on the stock, with a mean price target of $427.89, suggesting potential upside of approximately 19%.
Additional Portfolio Adjustments by ARK on June 3
Alongside its Alphabet purchases, ARK acquired 30,273 shares of Alibaba, valued at approximately $4 million. The Chinese technology giant’s shares fell 2.76% during Wednesday’s session and have declined roughly 11% year-to-date.
ARK also added 5,608 shares of Meta Platforms, representing approximately $3.35 million in value. Despite Meta’s 4%+ gain that day, the stock remains down about 10% for the year. Analysts assign Meta a Strong Buy rating with upside potential of around 32%.
On the divestment side, ARK reduced its Advanced Micro Devices exposure significantly, selling 74,838 shares worth roughly $39 million. AMD has skyrocketed more than 140% year-to-date, fueled by robust demand for its artificial intelligence chip products.
The firm also scaled back positions in Baidu and Teradyne, disposing of shares valued at approximately $14.6 million and $18.3 million, respectively.
Notwithstanding ARK’s AMD share sales, Wall Street analysts maintain a Strong Buy consensus on the semiconductor stock. However, the average analyst price target of $477.33 currently trails the stock’s recent trading levels.
