Cathie Wood of Ark Investment Management buys tech stock that dropped 16.3% last week, following her strategy of picking up stocks on pullbacks. Her funds have outperformed major market indexes, with ARKK up 40% YTD vs. S&P 500’s 14.2% gain. Wood’s investment style focuses on emerging high-tech companies with potential for long-term returns.

Ark Innovation ETF delivered a 153% return in 2020 but saw a 60% drop in 2022, leading to a five-year annualized return of -4.07%. Morningstar data shows S&P 500 annualized return at 15.57% over the same period. Despite swings, Wood remains bullish on tech stocks for the future.

Wood’s Ark funds purchased $13.8 million worth of Pinterest shares after the stock plunged 21.76% due to disappointing earnings and outlook. Earnings per share missed expectations at 38 cents, with forecasted revenue for Q4 falling below estimates. Meta, on the other hand, saw strong digital ad sales with revenue up 26% YoY.

Despite challenges, Citi lowered Pinterest’s price target to $38 but maintains a buy rating, citing positive metrics like a conversion lift and improved engagement. Wood also trimmed holdings in Robinhood Markets, Reddit, and SoFi Technologies recently. Pinterest is not among the top 10 holdings of the Ark Innovation ETF.

Read more at Yahoo Finance: Cathie Wood buys $13.8 million of tumbling tech stock