Cathie Wood’s Ark Innovation ETF was down 9.58% year to date, underperforming the S&P 500 which gained 1.27%. Wood actively manages her tech holdings, with a history of sharp gains and losses. Despite past success, her ETF has seen a five-year annualized return of -13.83%.

Wood focuses on emerging high-tech companies with growth potential but high volatility. The Ark Innovation ETF wiped out $7 billion in investor wealth from 2014 to 2024, ranking as the third-biggest wealth destroyer among mutual funds and ETFs. Not all investors share Wood’s optimism, with the ETF experiencing net outflows.

In a recent letter, Wood predicts a sharp rebound in the U.S. economy in 2026 despite past recessions. She dismisses talk of an AI bubble, foreseeing a major capital spending cycle ahead. Wood’s Ark funds recently bought a significant stake in Alphabet Inc. ahead of the company’s strong fourth-quarter earnings report.

Alphabet exceeded Wall Street’s expectations with earnings of $2.82 per share and revenue of $113.83 billion for the quarter. Google Cloud revenue rose 48% due to demand for AI services. The company plans to double capital spending in 2026 to meet customer demand and capitalize on growth opportunities.

Bank of America analysts reiterate a buy rating for Alphabet stock following the earnings report. The firm sees opportunities for increased monetization and revenue growth driven by AI benefits and advertising initiatives. Alphabet class C stock closed at $323.10 on Feb. 6.

Read more at Yahoo Finance: Cathie Wood buys $43 million of megacap tech stock