Cathie Wood buys $45 million of battered megacap tech stock, sticking with her strategy of investing in disruptive tech companies despite setbacks. The Ark Innovation ETF has seen a volatile year but is up 33.3% year-to-date, outpacing the S&P 500 significantly. Wood remains optimistic about the future of tech stocks.

Wood’s investment strategy focuses on high-tech companies in emerging fields, leading to major fluctuations in Ark funds’ values. Despite this, she remains confident in the potential of these companies to reshape industries. However, not all investors share her optimism, as the Ark Innovation ETF saw nearly $2 billion in net outflows over the past year.

Tesla’s recent drop in stock price following disappointing Q2 earnings didn’t deter Wood, who snapped up $45.3 million worth of shares. Musk acknowledged challenges facing Tesla, but Wood remains a staunch supporter, predicting the stock could reach $2,600 in five years driven by the anticipated success of the company’s robotaxi service.

Wood’s enthusiasm for tech stocks extends beyond Tesla to other companies like Alphabet. She remains focused on the potential for technological innovation platforms to drive growth. Despite past losses, Wood’s confidence in the future of tech stocks remains unwavering, even as she faces criticism and market challenges.

Read more at Yahoo Finance: Cathie Wood buys $45 million of battered megacap tech stock