Cathie Wood’s ARK Next Generation Internet ETF buys 195,517 shares of Chinese e-commerce giant Pinduoduo
As of Monday’s closing price, Wood’s shares were worth roughly $31.25 million.
Cathie Wood’s ARK ETFs have been in the news of late as a rotation away from the highly valued tech sector has hurt the funds’ returns.
Despite the recent tech pullback, investors continue to trust Wood with their funds. In fact, investors put more money into most of Wood’s ETFs than they took out during the drawdown, ARK ETFs added $1.6 billion in total holdings over the past month, per the Wall Street Journal.
Throughout the tech sell-off Wood has been buying up shares in her highest conviction plays including Tesla, Palantir, e-commerce players like JD.com, and now Pinduoduo.
Pinduoduo was founded in 2015 by Colin Huang and quickly grew to take the third spot in China’s e-commerce arms race. The company has focused on being a low-cost, agriculture-focused e-commerce alternative for Chinese buyers.
Pinduoduo means “Together, More Savings, More Fun.” The company is expected to report earnings on March 17 before the opening bell.
In its last earnings report, Pinduoduo revealed it nearly doubled sales year-over-year, turning in over $2 billion in revenue for the first time in a single quarter. The Chinese e-commerce giant also notched its first-ever quarterly net profit of $69 million for the quarter that ended in September 2020.
Overall analysts are bullish on Pinduoduo. The company boasts 12 “buy” ratings, four “neutral” ratings, and zero “sell” ratings from analysts.
Oppenheimer even boosted its price target for the e-commerce giant to $200 per share back in January.
Shares of Pinduoduo traded up 3.87% as of 10:36 a.m. ET on Tuesday.