Starting the abbreviated trading week on a sour note, shares of Cerebras (CBRS +19.00%) closed 5.9% lower yesterday from the end of trading on Friday. The artificial intelligence (AI) stock, however, is heading in the other direction today. A notable name in growth investing picked up shares in her exchange-traded funds (ETFs) on Tuesday, and investors are following her lead.
As of 3:09 p.m. ET, shares of Cerebras are up 8.5%.
Image source: Getty Images.
The Ark Invest position continues to grow
After Cerebras completed its initial public offering on May 14, its shares were immediately added to two of Cathie Wood's Ark Invest ETFs: the Ark Innovation ETF (ARKK +3.20%) and the ARK Next Generation Internet ETF (ARKW +3.45%).
NASDAQ: CBRS
Key Data Points
During yesterday's trading session, the Ark Innovation ETF added 25,021 shares, and the Ark Next Generation Internet ETF picked up 10,107 shares.
Although the Ark Invest funds have increased their positions in Cerebras, the AI stock accounts for only moderate weightings. In the Ark Innovation ETF, for example, Cerebras has a 1.03% weighting, while in the Ark Next Generation Internet ETF, it has a 1.1% weighting.
Is now the right time to pick up a position in Cerebras?
Unsurprisingly, Cerebras' stock is jumping today. With Cathie Wood's Ark Invest showing continued interest in increasing its position, investors are interpreting this as validation of the stock's potential. To blindly follow one investor's lead, however, is a risky strategy, and investors should exercise their due diligence before starting their own positions.
