In this article, we will take a look at Cathie Wood selling these 5 stocks in 2023. To see more such companies, go directly to Cathie Wood is Selling These 12 Stocks in 2023.
5. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 20
Cathie Wood’s ARK had owned 996,000 shares of Chinese EV company XPeng Inc. (NYSE:XPEV) in the fourth quarter of 2022. The fund sold almost its entire stake in XPeng Inc. (NYSE:XPEV) in the first quarter, retaining just 297 shares of the company. XPeng Inc. (NYSE:XPEV) has lost about 57% over the past one year.
As of the end of the fourth quarter of 2022, 17 hedge funds had stakes in XPeng Inc. (NYSE:XPEV). The total worth of these hedge funds’ stakes was $171 million.
4. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 37
ARK Investment Management cut its stake in project management software company monday.com Ltd. (NASDAQ:MNDY) by 93% in the first quarter of 2023. However, the fund still owns a $2.7 million stake in monday.com Ltd. (NASDAQ:MNDY) as of the end of March.
monday.com Ltd. (NASDAQ:MNDY) recently jumped after the company posted upbeat Q1 results and boosted its 2023 outlook. Monday.com’s adjusted EPS in the quarter came in at $0.15, surpassing estimates by $0.44. Revenue in the quarter jumped about 50% year over year to $162.3 million, surpassing estimates by $7.01 million.
According to Insider Monkey’s database of 943 hedge funds, 25 hedge funds have stakes in monday.com Ltd. (NASDAQ:MNDY) as of the end of the fourth quarter of 2022, down from 31 funds in the previous quarter. This shows monday.com Ltd. (NASDAQ:MNDY) saw a decline in hedge fund sentiment in the last quarter of 2022.
3. Farfetch Limited (NYSE:FTCH)
Number of Hedge Fund Holders: 39
UK-based luxury fashion ecommerce company Farfetch Limited (NYSE:FTCH) is one of the stocks Cathie Wood is selling in 2023. ARK Investment sold 650,158 shares of Farfetch Limited (NYSE:FTCH) during the March quarter.
But Farfetch Limited (NYSE:FTCH) shares posted a strong rally recently after the company posted impressive Q1 results. Bank of America analyst Geoffroy de Mendez said in a note that the “fundamental thesis that Farfetch Limited (NYSE:FTCH) is best positioned to win the online luxury market keeps gaining ground.” The analyst reiterated a Buy rating on the stock and gave a price target of $13.
Out of the 943 hedge funds tracked by Insider Monkey, 44 hedge funds had stakes in Farfetch Limited (NYSE:FTCH) at the end of 2022. The biggest stakeholder of Farfetch Limited (NYSE:FTCH) was Miller Value Partners of Bill Miller which had a $32.4 million stake in the company.
Polen U.S. SMID Company Growth Strategy made the following comment about Farfetch Limited (NYSE:FTCH) in its Q4 2022 investor letter:
“Farfetch Limited (NYSE:FTCH) is an online marketplace for luxury goods. The stock was down -35% on the back of an investor day where management issued targets that implied decelerating growth. While this is a disappointing development in what has shaped into a disappointing year for the stock, we are maintaining our position with a focus on the long-term opportunity. Luxury fashion is still in a very nascent stage of migrating online. Farfetch—through partnerships and deep relationships it has built over many years— remains very well positioned to benefit from this trend.”
2. Endeavor Group Holdings, Inc. (NYSE:EDR)
Number of Hedge Fund Holders: 52
Media and marketing company Endeavor Group Holdings, Inc. (NYSE:EDR) ranks 2nd in our list of the stocks sold by Cathie Wood earlier this year. Cathie Wood sold almost her entire stake in Endeavor Group Holdings, Inc. (NYSE:EDR) in the first quarter, selling 508,483 shares.
Earlier this month Endeavor Group Holdings, Inc. (NYSE:EDR) posted its first quarter results, which show that its GAAP EPS in the period came in at $0.03 missing estimates by $0.07. Revenue in the quarter jumped 8.8% year over year to $1.6 billion, surpassing estimates by $30 million. For 2023 Endeavor Group Holdings, Inc. (NYSE:EDR) expects its revenue to be between $5.665 billion and $5.815 billion, versus the consensus estimate of $5.90 billion.
1. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 99
Adobe Inc. (NASDAQ:ADBE) was one of the stocks dumped by Cathie Wood during the first quarter of this year as her hedge fund sold over 43,000 shares of the company, entirely exiting its position held in the fourth quarter of 2022. Adobe Inc. (NASDAQ:ADBE) shares recently fell after regulators in the UK announced to investigate the company’s $20 billion deal to buy interface design tool company Figma over competition concerns.
As of the end of the fourth quarter of 2022, 99 hedge funds (including ARK) tracked by Insider Monkey had stakes in Adobe Inc. (NASDAQ:ADBE), up from 93 funds in the previous quarter.
Polen Focus Growth Strategy made the following comment about Adobe Inc. (NASDAQ:ADBE) in its Q1 2023 investor letter:
“One area we are watching regarding Alphabet and Adobe Inc. (NASDAQ:ADBE) is AI systems and their capabilities, including generative AI. Interestingly, both Adobe and Alphabet could see benefits or threats from the emergence of generative AI and large language models (LLMs). Both companies already use generative AI to the benefit of their users in anticipating how content creators edit their work (Adobe) and in how search results are anticipated and generated (Google). At the same time, breakthrough technologies like AI can open the door to additional competition and/or impact a company’s profitability levels. We now see AI systems others are developing, including LLMs and generative AI offerings, that could be more competitive in the future. While we think it remains early days for ChatGPT and the capabilities of these types of LLMs and generative AI programs like DALL-E, the technology seems to be progressing at a fast rate and will at least require a strong response from incumbents.
As of now, we believe Alphabet and Adobe are leaders in their own right in these areas and have a clear path to improving their existing offerings with AI advancements, which would allow them to be net beneficiaries of AI. There are also significant barriers to building leading AI offerings in these areas. As a result, our position sizes in Adobe and Alphabet remain sizeable. For Adobe, the status of its pending $20 billion-plus Figma acquisition is also uncertain. There is a good chance, in our view, that it will be blocked by regulators, which would mean the future opportunity to expand its offerings to the developer community (beyond designers) may not occur.”
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