Cathie Wood boosted its stake inJD.com after Q2 earnings beat analyst estimates.Ark Invest disclosed that it bought 164,889 shares in JD.com on Monday.- Wood's investment firm recently offloaded Chinese tech stocks as regulatory risks mounted.
Cathie Wood's Ark Invest added to its $4 position on Monday after the e-commerce group reported strong $4 that beat analyst estimates, signaling the star stock-picker is feeling more bullish on Chinese tech stocks.
JD.com's revenue jumped more than 26% to 254 billion renminbi ($39 billion) last quarter, as it added a record 32 million users. Its total user base grew by 27% year-on-year to more than 531 million.
The company's Hong Kong-listed shares rose nearly 10% in early trading on Tuesday, while its US-listed shares rose 8% in the pre-market session.
The robust results may explain why Wood purchased $4 American Depositary Receipts in JD.com on Monday, under $4 (ARKQ).
JD.com wasn't the only Chinese tech stock to rally. Other companies have rebounded after the threat of stricter regulations hammered their shares, suggesting that strong corporate results have helped ease investor concerns. $4 and $4 rose more than 8% each, while Meituan was up more than 13% on Tuesday.
Ark had been $4, including JD.com, after Beijing's regulatory clampdown fueled uncertainty about the trading environment. Wood's investment firm had reduced its China exposure to $4, and redeployed cash raised from these stocks towards Ark's highest-conviction names instead.
But Monday's move signals Wood may be pleased by the lack of significant new initiatives in China's crackdown in recent days.
Last week, she said China's plan to tighten regulations conflicts with its ambition to become the world leader in innovation. The country seems to be in a state of retreat when it comes to technological innovation, as it's tightly controlling the use of data by tech companies, she noted.
JD.com's US-listed shares are down 25% so far this year.
Read More: $4