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Cathie Wood Selling Slack Shares After Salesforce Acquisition

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Cathie Wood Selling Slack Shares After Salesforce Acquisition

What Happened: Salesforce.com Inc (NYSE: CRM) is acquiring Slack Technologies (NASDAQ: WORK) in a $27.7 billion deal that will pay existing Slack shareholders $26.74 cash and .0776 shares of Salesforce for each share held.

Notable ETF Manager Cathie Wood has been selling shares of Slack since the merger was confirmed.

Wood sold shares of Slack in Ark Innovation ETF (NYSE: ARKK), Ark Next Generation Internet ETF (NYSE: ARKW) and Ark Fintech Innovation ETF (NYSE: ARKF).

The moves included selling 1.4 million shares of Slack for ARKW on November 30, 4.2 million shares of Slack in ARKK on December 2 and 5.88 million shares of Slack in ARKK on Dec. 3. All three funds still hold positions in Slack.

Related Link: Jim Cramer on Tesla Upgrade, Salesforce’s Slack Acquisition

Why It’s Important: Slack shares are up 89% in 2020, so Wood could be simply taking some profits on this investment.

The large sale of Slack shares could mean Wood believes the valuation can’t go higher here or the long-term opportunity in Salesforce is not as great.

Salesforce is not a stock owned by either of the ETFs mentioned.

Price Action: Shares of Slack are trading at $42.78 on Friday. Salesforce shares are trading up 1% to $222.17; Shares have fallen 10% in the last five days.

The ARK funds from Cathie Wood are among the best performing and most followed ETFs in 2020.

 

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Posted-In: ARK Investment Management Catherine Wood Cathie WoodSpecialty ETFs ETFs