Cathie Wood Cashes Out On Rocket Lab’s 28% Surge in $9M Share Sale But Expands Bet On Flying Cars

On Wednesday, the Cathie Wood-led Ark Invest made substantial trades in Rocket Lab USA Inc RKLB, Amazon.com Inc AMZN, and Archer Aviation ACHR.

The Rocket Lab USA Inc Trade

Ark Invest sold 479,628 shares in Rocket Lab USA. The trades were made through ARK Autonomous Technology & Robotics ETF ARKQ and ARK Space Exploration & Innovation ETF ARKX and were valued at almost $9 million. On Wednesday, Rocket Lab shares shot up over 28% to $18.83.

This sale came after Rocket Lab reported better-than-expected financial results for the third quarter and announced a multi-launch agreement with a confidential customer. The company was also awarded a defense contract worth up to $8 million. Rocket Lab’s shares surged after it reported revenue of $104.81 million, beating the consensus estimate of $102.28 million. The company also reported a loss of 10 cents per share, which was less than the expected loss of 11 cents per share. Rocket Lab expects fourth-quarter revenue in the range of $125 million to $135 million and plans to end the year with more Electron launches. The company has already set an annual launch record with 12 Electron launches to date.

The Amazon.com Trade

Ark Invest also purchased Amazon.com shares. Those transactions were made through ARKQ and ARKX and were valued at $956,812. On Wednesday, Amazon shares ended the day 2.48% higher at $214.10.

Amazon’s stock rose after the company launched an online storefront called “Haul,” designed to compete with Temu. The storefront offers low-cost shopping, with products priced to compete with heavily discounted Chinese products from competitors like Temu and Shein. Chinese e-commerce platforms have built loyal user bases by offering steep discounts on merchandise. Amazon began talking with China-based sellers about offering a similar service earlier this year.

The Archer Aviation Trade

Archer Aviation was another significant trade made by Ark Invest. The firm purchased 57,395 shares of the company for $245,650. The trades were made through ARKQ and ARKX. Archer Aviation shares closed Wednesday 8.15% lower at $4.28.

Archer Aviation, a frontrunner in the electric vertical takeoff and landing (eVTOL) aircraft sector, has seen its stock price soar after signing a major deal with a Japanese aviation giant and reporting solid earnings for the third quarter of fiscal year 2024. Archer Aviation’s strategic alliance with Soracle, a joint venture between Japan Airlines (JAL) and Sumitomo Corporation, has electrified the eVTOL market. Soracle has obtained the right to purchase up to 100 of Archer’s Midnight aircraft, with a potential value reaching $500 million. This agreement marks a significant financial boost for Archer and a calculated entry into a market ripe for urban air mobility disruption.

Importantly, Ark also purchased 55,770 shares of Joby Aviation Inc JOBY. Joby is also an eVTOL company. The transaction amounted to $329,043.

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Other Key Trades:

• Ark purchased 1,000 shares of Advanced Micro Devices, Inc. AMD through ARKX. The transaction was valued at $139,300.
• The Wood-led firm purchased shares of Iridium Communications Inc. (IRDM), L3Harris Technologies Inc. (LHX), and Schrodinger Inc. (SDGR).
• Ark Sold shares of Repare Therapeutics Inc. (SNTI) and Adaptive Biotechnologies Corp. (ADPT) along with Exact Sciences Corp. (EXAS).

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal