Cathie Wood's Ark Invest shuffled its portfolio Thursday with some eyebrow-raising moves, trimming positions in Tesla Inc. (TSLA) and Meta Platforms Inc. (META) while loading up on more ARK 21Shares Bitcoin ETF (ARKB) shares. The trades paint an interesting picture of how Wood's team is navigating evolving market conditions across tech and crypto.

Tesla Gets Trimmed But Stays on Top

The ARK Next Generation Internet ETF (ARKW) sold 7,478 shares of Tesla on Thursday, with the transaction valued at approximately $3.4 million. Tesla closed at $454.53 that day, up 1.74%, so timing wasn't terrible.

Here's the thing though: despite the sale, Tesla remains Ark's biggest bet by a wide margin. Wood's total stake stands at $949.82 million, representing 12.36% of her portfolio by weight. So this wasn't exactly a vote of no confidence.

The sale comes as Tesla has been underperforming major indices like the S&P 500 and NASDAQ 100, a point highlighted by investor Gary Black. Still, Black noted that Elon Musk's company has been making significant advances in autonomous driving technology, which could serve as a catalyst for future growth, particularly in the Robotaxi sector. When you're playing the long game on self-driving cars, a few percentage points of underperformance probably doesn't shake your thesis.

Meta's Metaverse Woes Drive Exit

Ark reduced its Meta holdings more substantially, unloading 11,056 shares through the ARK Innovation ETF (ARKK) and another 3,155 shares through the ARKW fund. With Meta closing at $661.53, up 3.43%, the total sale came to roughly $2.08 million.

The timing here is interesting. The sale follows reports that Meta is planning significant budget cuts for its metaverse division, the ambitious project that CEO Mark Zuckerberg has championed for years. According to those reports, Meta planned steep 2026 budget cuts to its metaverse division, including reductions of up to 30% and possible layoffs as early as January.

Executives were apparently asked to find 10% cuts companywide, but the metaverse group faced deeper trims amid weak adoption and staggering losses exceeding $70 billion since 2021. Most cuts were expected to hit virtual reality and Horizon Worlds as Meta shifted its focus toward AI and related hardware. Ironically, Meta's stock rose after these reports surfaced, suggesting investors were pleased to see the company pulling back on its most expensive bet.

On a brighter note for Meta, the company bolstered its design and AI efforts by hiring longtime Apple executive Alan Dye, signaling where its priorities now lie.

Bitcoin Bet Continues Despite Volatility

While trimming traditional tech names, Ark added to its crypto exposure. The ARK Blockchain & Fintech Innovation ETF (ARKF) and ARKW funds scooped up a combined 52,200 shares of ARK 21Shares Bitcoin ETF. With the ETF closing at $30.73, the purchase totaled around $1.6 million.

This move aligns with Ark's continued conviction in the cryptocurrency sector, even as volatility remains the name of the game. Bitcoin was trading 0.94% lower at $92,538.95 over the 24-hour period, while Ethereum, the second-largest cryptocurrency by market cap, slipped 1.36% to $3,164.61 during the same timeframe.

Notably, this wasn't Ark's first recent Bitcoin ETF purchase. On Monday, the firm had bought ARKB shares worth nearly $2 million, suggesting Wood sees current price levels as an opportunity rather than a warning sign.

Other Notable Portfolio Moves

Beyond the headline trades, Ark made several other significant adjustments to its holdings:

• Purchased 158,981 shares of Trade Desk Inc. through ARKK and 45,373 shares through ARKW
• Sold 176,353 shares of Iridium Communications Inc. through ARKK, 42,971 shares through ARKQ, and 12,071 shares via ARKX
• Bought 28,409 shares of Pure Storage Inc. through ARKW
• Purchased 42,377 shares of WeRide Inc. through ARKQ

The Iridium sale stands out as particularly substantial, with shares being dumped across multiple Ark funds. Meanwhile, the Trade Desk purchase suggests continued confidence in the digital advertising technology space.

For context on valuations, market data indicates Tesla stock currently has a Value ranking in the 3rd percentile compared to other EV players, suggesting it trades at a significant premium relative to its peer group. Whether that premium is justified depends entirely on whether you believe in Wood's long-term vision for the company's autonomous driving future.