Cathie Wood's Internet ETF Sells Some Tesla, Xilinx, Buys The Dip In Fastly

One of the top-performing ETFs of the year bought the dip in Fastly Thursday.

What Happened: After pre-announcing third quarter earnings, Fastly Inc FSLY saw shares drop 30% after-hours on Wednesday.

That dip led to the opportunity for the Ark Next Generation Internet ETF ARKW to take a stake in the company.

The Ark Next Generation Internet ETF, led by Cathie Wood, bought 304,300 shares of Fastly. This represents a current stake of $27.3 million, around 1% of the fund’s assets.

The fund also bought small amounts of Palantir Technologies PLTR and Zoom Video Communications ZM on Thursday.

The ETF sold part of its stake in Tesla Inc TSLA, which is its top holding.

The Next Generation Internet ETF is known for its bullish take on the electric vehicle maker, and the stock has been the ETF's top holding for some time.

Over 26,000 shares of Tesla were sold, representing around $12 million. The sale represented around 0.4% of assets at the time.

Wood’s ETF also sold shares of CRM, Roku Inc ROKU, Square Inc SQ, Xilinx Inc XLNX and LendingClub Corporation LC.

Related Link: Fastly Analysts Have More Questions Than Answers Amid Q3 Warning

Why It’s Important: Wood could be making a large bet that investors overreacted to the sharp drop in Fastly’s price on Thursday.

She also is taking some profits in Tesla, one of the best-performing stocks in the ETF, up over 430% in 2020.

The ETF is notably selling large amounts of Xilinx with three days of sales dating back to Sept. 30.

The Ark Next Generation Internet ETF is one of the best-performing ETFs in 2020 with a year-to-date return of 107%. The fund has returned 220% and 511% over the last three and five years, respectively.

Wood's ETF started buying shares in Chamath Palihapitiya's SPAC Social Capital Hedosophia Holdings Crop II IPOB in late September. Shares are up 30% since her initial purchase. 

FSLY Price Action: Shares of Fastly were down 5.43% at $84.82 at last check Friday. 

Disclosure: Author is long shares of IPOB.

Posted In: Catherine WoodCathie WoodMoversTrading IdeasETFs