Nvidia's Exit Sparks 14% Intraday Plunge
Nvidia revealed it had fully liquidated its position in Recursion Pharmaceuticals (RXRX) by the end of the fourth quarter, according to its latest 13-F filing. The AI giant sold its entire stake of 7.71 million shares, a move that initially sent Recursion's stock tumbling by 14% during Wednesday's trading session. The sale signaled a significant reversal from Nvidia, whose investment had previously been seen as a vote of confidence in Recursion's AI-driven drug discovery platform.
Cathie Wood's ARK Invest Buys 1.25 Million Shares
Seeing the price decline as an opportunity, Cathie Wood’s ARK Invest stepped in to acquire 1.25 million shares of Recursion. The purchase was distributed across two of its exchange-traded funds, reinforcing its bullish stance on the biotech firm. With this latest acquisition, the flagship ARK Innovation ETF (ARKK) now holds 21.8 million shares of Recursion, a position valued at approximately $77 million. This dip-buying was a key factor in the stock's recovery, which saw it rebound from its lows to finish the day with a 2% gain.
Wall Street Remains Divided on Recursion's 98% Upside
The opposing trades from Nvidia and ARK highlight a deep division over Recursion's valuation and prospects. The company's stock has struggled, falling 14% so far this year and 68% over the past twelve months. Despite this performance, Wall Street analysts have an average price target of $7, which implies a potential 98% upside from its current level. However, conviction remains low, with only 38% of analysts covering the stock rating it a Buy, leaving investors to weigh the conflicting signals from two of the market's most-watched players.
