Cathie Wood's Ark Invest was busy reshuffling its portfolio Wednesday, making some eyebrow-raising moves across Tesla Inc. (TSLA), Coinbase Global Inc. (COIN), and Deere & Co. (DE). The trades offer a window into how Ark is navigating a market where AI hype meets valuation reality, and where some beaten-down stocks might be getting interesting.

Trimming the Tesla Position

Let's start with the headline grabber: Ark dumped 27,102 Tesla shares from its flagship ARK Innovation ETF (ARKK), cashing out roughly $11.6 million. This happened on a day when Tesla actually performed well, closing at $426.58 with a 1.71% gain.

The timing is interesting. Tesla's market cap recently surged by $90 billion, fueled by enthusiasm around its AI ambitions and autonomous vehicle plans. But here's the thing: analysts have been raising questions about the core business fundamentals. The latest quarterly results sent mixed signals, and when you strip away the excitement about robotaxis and AI, there are legitimate concerns about whether the valuation makes sense right now.

Ark's decision to sell into strength suggests Wood might be taking some chips off the table while the getting's good, rotating capital toward opportunities she finds more compelling at current prices.

Doubling Down on Coinbase

Here's where things get spicy. While selling Tesla, Ark went on a Coinbase buying spree, adding 62,166 shares across multiple ETFs including ARK Blockchain And Fintech Innovation ETF (ARKF), ARK Next Generation Internet ETF (ARKW), and ARKK. The total purchase came to almost $16.5 million, with Coinbase closing at $264.97, up 4.27%.

Now, this is where it gets contrarian. Coinbase shares have been under serious pressure lately, and Argus Research just downgraded the stock to Hold. Their reasoning? Valuation looks stretched at 39 times the firm's 2026 earnings forecast—way above peer exchanges. The downgrade came even though Coinbase delivered strong third-quarter numbers with $1.9 billion in revenue and $1.50 in earnings per share.

The pressure on Coinbase is partly tied to Bitcoin (BTC) weakness, which tends to drag down crypto-linked companies. Argus cut its earnings estimates and said they'd consider upgrading again once valuations come back down to earth and align more closely with traditional exchanges.

So why is Wood buying? Presumably, she's betting that the current valuation concerns are temporary and that Coinbase's position as a dominant crypto exchange will pay off as the market evolves. It's a classic Ark move: buy what others are selling when you believe in the long-term thesis.

Betting on Deere's Recovery

The third major trade involved Deere & Co., where Ark scooped up 30,518 shares across ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Space And Defense Innovation ETF (ARKX), and ARKK. The purchase was worth approximately $14.3 million.

Deere's stock got hammered Wednesday, dropping 5.67% to close at $469.87. The culprit? A fourth-quarter earnings report that included a less-than-inspiring fiscal 2026 outlook. The actual quarterly numbers weren't bad at all—the machinery maker posted earnings per share of $3.93 and sales of $12.39 billion, both beating expectations, with revenue up 11% year over year.

CEO John May highlighted that structural improvements and diversified markets helped the company deliver its strongest results for this stage of the business cycle. But markets care about the future, and the 2026 outlook spooked investors.

Ark's purchase into the decline suggests Wood sees this as a buying opportunity. The bet here is that Deere's long-term positioning in autonomous technology and agricultural innovation will drive value that the market isn't fully appreciating after the selloff.

Other Notable Moves

Beyond the big three, Ark made several other portfolio adjustments worth noting:

• Sold 85,356 shares of Iridium Communications Inc. from ARKK, ARKQ, and ARKX.
• Sold 98,492 shares of Ibotta Inc. from ARKF and ARKW.
• Bought 39,400 shares of ARK 21Shares Bitcoin ETF from ARKF and ARKW.
• Sold 19,672 shares of GitLab Inc. from ARKK and ARKW.
• Bought 14,540 shares of Klarna Group PLC from ARKF.

The pattern here shows Ark continuing to rotate its portfolio actively, selling positions where valuations might have stretched and buying into areas where Wood sees dislocations between price and long-term value. Whether these moves pay off depends on whether her forward-looking thesis proves correct—but that's always been the Ark Invest playbook.