On Wednesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its stake in Alibaba Group Holding Ltd (NYSE:BABA) and Baidu Inc (NASDAQ:BIDU), while reducing its holdings in Palantir Technologies Inc (NASDAQ:PLTR) and Archer Aviation Inc (NYSE:ACHR).

The Alibaba Trade

Ark Invest made a substantial purchase of Alibaba shares on Wednesday. The Ark Fintech Innovation ETF (BATS:ARKF) and ARK Innovation ETF (BATS:ARKK) collectively acquired 75,541 shares, valued at approximately $12.5 million, based on Alibaba’s closing price of $165.91.

This investment comes as Alibaba continues to expand its global reach, recently opening a second data center in Dubai to enhance AI adoption. Analysts have noted Alibaba’s robust performance in its cloud business and AI advancements, which have helped counterbalance concerns over U.S.-China tensions. 

The Baidu Trade

Ark Invest also increased its holdings in Baidu on the same day, purchasing a total of 111,281 shares through the ARKK, ARK Autonomous Technology & Robotics ETF
(BATS:ARKQ), and ARK Next Generation Internet ETF (BATS:ARKW). This acquisition is valued at approximately $13.5 million, based on Baidu’s closing price of $121.58.

Baidu’s Apollo Go robotaxi service is expanding into new markets, including Australia and Dubai, as it seeks to compete with industry giants like Waymo and Tesla. The company has achieved operational profitability in several Chinese cities, positioning it well for future growth. 

The Palantir Trade

Ark Invest reduced its stake in Palantir, selling 16,560 shares through the ARKW ETF. This sale is valued at approximately $2.97 million, based on Palantir’s closing price of $179.62.

Despite Palantir’s impressive 93% year-over-year growth in its U.S. commercial business and its first-ever quarter surpassing $1 billion in revenue, concerns over its valuation persist. 

The Archer Aviation Trade

Ark Invest also trimmed its position in Archer Aviation, selling 302,280 shares through the ARKK ETF, valued at approximately $3.9 million based on the closing price of $13.03.

Archer recently acquired a portfolio of patents from Lilium Aerospace, aiming to enhance its capabilities in advanced air mobility. Despite this strategic acquisition, market sentiment remains cautious, as noted by Jim Cramer, who described the current environment as a “speculative tsunami.” 

Other Key Trades:

• Roblox Corp (Pre-Reincorporation) (RBLX): Sold 61,880 shares across ARKF, ARKK, and ARKW.
• Shopify Inc (SHOP): Sold 6,240 shares through ARKF.
• Teradyne Inc (TER): Sold 30,514 shares through ARKK.
• Kratos Defense and Security Solutions Inc (KTOS): Sold 28,145 shares through ARKQ.

Benzinga's Edge Stock Rankings indicate Alibaba stock has a Quality in the 39th percentile. Here is how it compares to other Cathie Wood holdings, such as AMD.

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