Ark Invest Sells Some Nvidia, Buys Pinterest Stock As AI Bet
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Cathie Wood's Ark Invest sold shares of Nvidia stock in February despite its leadership in AI chips, taking profits after huge gains.
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Ark bought shares of Pinterest instead, now making up over 1% of its $14B portfolio, betting on its AI and social commerce potential.
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Pinterest is investing heavily in AI to improve recommendations and search, and partnering with Amazon and Google to expand its ad platform.
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Pinterest stock trades at a reasonable valuation of 8.2x sales compared to its expected 15% annual revenue growth rate.
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Pinterest faces tough competition, but its purpose-built discovery platform gives it unique strengths to drive social commerce if it can harness its potential.