Cathie Wood of Ark Investment Management buys tech stocks on the way down for potential bargains. Her funds have seen volatile swings this year, from sharp losses to strong gains. Her flagship Ark Innovation ETF (ARKK) is up 55.1% YTD, outperforming the S&P 500’s 15.5% gain. However, the Ark Innovation ETF has a five-year annualized return of negative 1.6%.
Wood’s investment strategy focuses on emerging high-tech companies in AI, blockchain, biotech, and robotics. The Ark funds experience major fluctuations due to the volatility of these companies. Despite a 153% return in 2020, the funds have also seen significant losses, wiping out $7 billion in investor wealth over 10 years.
Wood remains bullish on tech stocks, predicting consumer and business shifts towards innovation platforms. However, the Ark Innovation ETF faced $1.01 billion in net outflows over the past year. Wood’s recent moves include buying shares of Netflix, Alibaba, and Baidu, citing favorable valuations in Chinese tech stocks compared to the U.S.
Netflix reported Q3 2025 revenue of $11.5 billion, up 17% YoY, but missed earnings expectations. Analysts have mixed opinions on Netflix stock, with Wedbush lowering its price target to $1,400 and JPMorgan cutting it to $1,275. Argus maintains a buy rating with a $1,410 target, praising Netflix’s value proposition and market dominance in long-form video streaming. 1. The stock market surged to record highs today, with the S&P 500 reaching an all-time high of 4,400 points. This comes after positive earnings reports from major tech companies and a boost in consumer confidence.
2. The unemployment rate dropped to 5.4% in the latest report, as the economy added 943,000 jobs in July. This marks a significant improvement from previous months and signals a strong recovery from the pandemic-induced recession.
3. In international news, tensions are rising in the Middle East as Israel and Hamas exchange airstrikes and rocket fire. The conflict has resulted in numerous casualties and widespread destruction in Gaza and southern Israel.
4. Scientists have discovered a new species of dinosaur in Argentina, named Llukalkan aliocranianus. This carnivorous dinosaur had a unique skull structure and is believed to have lived during the Late Cretaceous period.
5. In health news, a new study suggests that the Pfizer-BioNTech COVID-19 vaccine is highly effective at preventing severe illness and hospitalization caused by the Delta variant. The study also found that two doses of the vaccine provide strong protection against infection.
Read more at Yahoo Finance: Cathie Wood buys $17.2 million of tumbling tech stock