Cathie Wood’s ARK Invest Reopens Alibaba Positions With $16.3M Stake

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Cathie Wood’s ARK Investment Management has reopened positions in Alibaba Group Holding Ltd. after a four-year hiatus, as the Chinese tech giant’s artificial intelligence ambitions fuel a sharp rally in its shares.

ARK Investment Expands Chinese Tech Holdings

Ark Investment reported in its daily trading report that two of the exchange-traded funds of the firm acquired American Depositary Receipts (ADRs) of Alibaba on Monday, creating a cumulative ownership of approximately $16.3 million.

The shift came as Alibaba ADRs surged to their most recent high since November 2021 on a Tuesday that extends a year-to-date run that has increased the value of the stock by almost twofold.

Alibaba has seen an influx of investors hoping that its AI initiative can drive its business up, despite its traditional e-commerce business being increasingly pressured by rivals like PDD Holdings Inc.

Alibaba History Shapes ARK Investment Strategy

Ark Investment has a long history with Alibaba going back to 2014, soon after the company had a blockbuster initial public offering, according to a Securities and Exchange Commission search tool. Nonetheless, there were no investments registered after September 2021, when a series of punches by Chinese regulators shook the tech industry and caused a dramatic selloff.

Also read: ARK Invest Backs BitMine as Treasury Surpasses 2 Million Ethereum

The withdrawal was indicative of a larger exit of Chinese internet stocks through the market mostly in 2021 and 2022. A possible strategy change is indicated in the most recent move of Ark Funds.

The company also started to accumulate shares of another Chinese technological firm Baidu Inc., which invests significantly in the field of AI, earlier this year. According to the records, Ark Funds purchased more shares in Baidu on Monday, raising the entire stake to approximately $47 million.

ARK Investment Innovation ETF Shows Strength

Beyond internet platforms, Cathie Wood’s Ark holds smaller stakes in electric vehicle producer BYD Co. Ltd., autonomous driving company Pony AI Inc., and logistics firm JD Logistics Inc.

Also read: How Could ARK Invest Raise Bitcoin’s Price Target to $2.4 Million by 2030

Wood, who once called himself a high-conviction investor in disruptive technologies, was a globally celebrated investor in 2020 after the flagship Ark Innovation ETF (ARKK) delivered outsize returns. The fund is up 49 percent as of 2025, compared to the S&P 500 and Nasdaq 100.

Its long-term performance is however mixed, as its five-year returns are in the negative market and the investors pull out the cash to the tune of $438 million this year, according to Bloomberg data.

Conclusion

Based on the latest research, Ark Investment’s renewed focus on Alibaba and Baidu underscores a strategic pivot toward Chinese AI growth. Although the risks of regulation samples and previous volatility still persist, the relocation is an indicator of trust in innovation-based prospects, which aligns with the long-term perspective of Cathie Wood on disruptive technologies transforming the world markets.

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Summary

Cathie Wood’s Ark Investment Management has reopened positions in Alibaba after four years, purchasing $16.3 million in ADRs as the stock hit its highest level since 2021. The shift has also underscored a renewed trust in the AI-led expansion of Alibaba, amid its growth in e-commerce competition. Ark also increased its Baidu share to 47 million, and retains small stakes in BYD, Pony AI, and JD Logistics, which represents a continuation of Wood allocating to disruptive technologies.