Cathie Wood Leverages Baidu’s Post-Earnings Dip, Sells PagerDuty

FomoAnxiety · 2026-02-27T07:15:31+00:00

Cathie Wood's ARK Invest made significant portfolio adjustments, purchasing shares in Baidu despite a revenue drop, betting on its AI potential. Wood also bought shares of AtaiBeckley but sold parts of other holdings, maintaining a strategic investment approach focused on future growth.

FomoAnxiety

2026-02-27 07:15:31

Abstract generation in progress

Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made notable portfolio changes on Thursday, February 26, as shown in ARK’s daily fund disclosures. Wood leveraged the 5.7% dip in Chinese tech giant Baidu’s BIDU -5.65% ▼ shares, despite the company beating sales and profit expectations for Q4 FY25. ARK Invest funds purchased 97,597 BIDU shares for $12.21 million. The share-price drop came after Baidu reported a 4% year-over-year drop in its revenues, due to continued weakness in its core advertising segment.

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However, Wood appears to be betting on Baidu’s AI future, a view echoed by CEO Robin Li, who highlighted strong growth in AI Cloud Infrastructure and growing enterprise recognition of its full‑stack AI capabilities. In Q4, AI‑powered businesses, including cloud infrastructure, AI apps, and robotaxis, generated $1.61 billion, or 43% of total revenue.

Wood’s Other Buy/Sell Trades

Wood also acquired 482,407 shares of biotechnology company AtaiBeckley ATAI -14.06% ▼ for roughly $1.79 million. ATAI shares plunged 14.1% yesterday, even though the company released positive top‑line Phase IIa data for its R‑MDMA‑derived compound EMP‑01 in social anxiety disorder (SAD). The results were scientifically encouraging but not transformative enough to justify the prior run‑up in the stock.

On the sell side, the largest trade was the sale of 25,175 shares of nuclear components firm BWX Technologies BWXT -0.49% ▼ for $5.22 million.

Wood also offloaded 307,843 shares of cloud-computing company PagerDuty PD +5.04% ▲ , aligning with her steady reduction in exposure to the firm. PD stock was up 5% yesterday, resulting in a sale of roughly $2.18 million.

ARK’s other sales included exiting positions in Beam Therapeutics BEAM -2.33% ▼ , Iridium Communications IRDM -4.86% ▼ , Salesforce CRM +4.03% ▲ , Pinterest PINS +1.37% ▲ , and Butterfly Network BFLY +50.65% ▲ .

Is BIDU Stock a Buy?

On TipRanks, BIDU stock has a Strong Buy consensus rating based on seven Buys and two Hold ratings. The average Baidu price target of $180.63 implies 44.3% upside potential from current levels. Over the past year, BIDU shares have surged 41.8%.

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