Cathie Wood's Ark Just Bought $7.6 Million of Nuclear Supplier BWX Technologies While Continuing to Dump Roblox Stock. Is Nuclear Power Ark's Next Big AI-Adjacent Bet?
Are nuclear energy stocks the hot new way to play the AI trade?
Overview
CEO Cathie Wood's Ark Invest firm is known for its focus on potentially revolutionary technologies. The firm manages multiple exchange-traded funds (ETFs) and publishes updates regularly when it makes trades. Wood's status as a high-profile growth investor and the easily trackable nature of the portfolio holdings of her company's ETFs mean that some investors pay close attention to trades made by Ark's investment teams.
News that Wood and her team have bought or sold a stock can even have a meaningful impact on a company's near-term valuation momentum and attract investor attention to plays surrounding longer-term trends. Ark's move to purchase roughly $7.6 million shares of BWX Technologies (NYSE: BWXT) across three of its funds on Aug. 20 generated new interest for the company as a nuclear power provider that could be poised to benefit from artificial intelligence tailwinds. Notably, Ark also sold roughly $6.5 million worth of Roblox stock the same day -- potentially reflecting a broader strategic reorientation by the firm.
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Originally published at www.fool.com.