Cathie Wood of Ark Investment Management recently added shares of a leading technology company before its February earnings report. Wood’s approach blends small- and mid-cap tech stocks with megacap growth stocks for fund stability and market opportunity. Last year, her Ark Innovation ETF outperformed the S&P 500, but 2022 has seen significant losses.

Wood remains optimistic about AI, blockchain, biotech, and robotics, believing in their long-term growth potential despite market volatility. The Ark Innovation ETF, however, has seen substantial investor wealth depletion, making it one of the biggest wealth destroyers in the market. While some doubt Wood’s optimism, others see strong potential in her investment choices.

In anticipation of Amazon’s fourth-quarter earnings, Wood’s ARK Blockchain & Fintech Innovation ETF purchased shares worth nearly $2 million. Amazon’s strong third-quarter earnings and robust cloud growth have analysts projecting continued success. Wedbush maintains an outperform rating with a $340 price target for Amazon shares.

The Ark Innovation ETF’s top holdings include Tesla, CRISPR Therapeutics, Roku, and other tech companies. Amazon’s investment in AI, including talks with OpenAI for up to $50 billion, is part of its strategy for future growth. Despite strong performance, Amazon confirmed significant corporate job cuts to streamline operations and reduce bureaucracy.

Analysts see healthy trends in Amazon’s core retail business, strong advertiser demand, and robust AWS growth. Amazon’s investment in AI and upcoming earnings report are key factors driving investor sentiment. The company’s recent job cuts aim to enhance efficiency and competitiveness in the market.

Read more at Yahoo Finance: Cathie Wood buys $1.9 million of megacap tech stock