ARK Invests $96M in Alphabet Stock as Cloud Revenue Grows 63%
GOOG•Cathie Wood’s ARK acquired 267,582 Alphabet shares valued at about $96 million, boosting its position since November following the Gemini 3 AI release. Alphabet plans an $80 billion equity raise this year and reported Google Cloud revenue up 63% to $20 billion in Q1.
1. ARK's Alphabet Accumulation
Cathie Wood’s ARK Investment Management acquired 267,582 Alphabet shares valued at approximately $96 million, marking a significant position taken in July last year and an aggressive build-up since November following the launch of the Gemini 3 AI model.
2. Equity Raise and Dilution Concerns
Alphabet announced plans to raise $80 billion through new equity issuance this year to fund AI capacity expansion, triggering a roughly 4% share price drop on the day after the announcement due to dilution worries.
3. Cloud Revenue Surge
Google Cloud generated $20 billion in revenue in the March quarter, a 63% year-over-year increase that topped analyst estimates of a 50.1% gain and represented the strongest segment growth since its 2020 breakout.
4. ARK's Portfolio Rebalancing
Alongside its Alphabet purchase, ARK trimmed $39 million of Advanced Micro Devices shares and $14.6 million of Baidu shares, while adding smaller positions in Alibaba and Meta Platforms; retail sentiment on Alphabet remained bullish.
