Confusing trade? Cathie Wood drops $50M in Nvidia stock just 2 weeks after major buy and a day before earnings

Ark Investment Management, led by Cathie Wood, sold more than 293,000 shares of NVIDIA Corporation NVDA on Tuesday through two of the company's exchange-traded funds. This comes just two weeks after Ark purchased 366,982 shares of NVIDIA Corporation NVDA and one day before the technology company's second quarter earnings release.

Nvidia was the 23rd-largest position in the company's flagship ARK Innovation ETF ARKK, with a weighting of 1.49% before Tuesday's trade, according to website data of the company.

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The background: The stock is down more than 7% in a month and closed at $171.81 on Tuesday. KeyBanc analyst John Vinh reiterated his "Overweight" rating on NVIDIA and a price target of $230. Vinh expects the second quarter results to line up with the company's negative pre-announcement on August 8 and expects the quarter to bottom.

Nvidia is expected to release second-quarter results on Wednesday after the bell. The analyst consensus is that Nvidia will post revenue of $8.1 billion and earnings per share of $1.25, according to Benzinga data.

Major Buy: Cathie Wood also bought 839,301 shares of Zoom Video Communications Inc ZM, through two of the company's ETFs, valued at over $68 million based on the stock price. Tuesday closing. Zoom Video is ARK Innovation ETF's 2nd largest holding valued at over $684 million with a weight of 8.43%.

Zoom reported second-quarter revenue of $1.1 billion, up 8% year-over-year.

The company posted second-quarter earnings of $1.05 per share, beating Street's estimate of 93 cents per share. According to Benzinga Pro, Morgan Stanley analyst Meta Marshall is rated "Overweight" and lowered the price target from $140 to $130.

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