The Bad Placeyahoo news | Cathie Wood buys $11 million of tumbling megacap tech stock
Cathie Wood, the founder of Ark Investment Management, continued her pattern of buying technology stocks when they dip, purchasing roughly 85,500 shares of Palantir Technologies—about $11 million at the latest close—despite the company’s shares being down nearly 30 % year‑to‑date. Wood’s flagship Ark Innovation ETF (ARKK) has seen volatile performance, soaring 35.5 % in 2023 but falling about 11 % YTD as of April 10, while the broader S&P 500 slipped slightly. Her reputation rests on the 153 % return the fund posted in 2020, contrasted with steep losses in bearish cycles such as the 60 % tumble in 2022, leaving the fund with a five‑year annualized return of –10.7 % versus 12.2 % for the S&P 500.
Wood argues that the global economy is heading toward a “great acceleration” driven by AI, robotics, blockchain, energy storage and other breakthrough technologies, which she believes could lift real GDP growth to 7‑8 % and be deflationary as AI training and inference costs plunge. In a January letter she dismissed talk of an AI bubble, insisting that a massive capital‑spending cycle is imminent. Nevertheless, ARKK has faced outflows of about $1.34 billion over the past year, with investors pulling $225 million in the last month alone.
Palantir, a data‑analytics and AI software provider serving both commercial clients and the U.S. military, posted strong Q4 earnings—adjusted EPS of $0.25 and 70 % revenue growth to $1.41 billion—yet its valuation remains a point of contention. While Wood has been trimming the stock over several quarters, this fresh $11 million purchase signals renewed confidence after a steep pullback; she has also added positions in Tesla, Robinhood and Kodiak AI while selling AMD. The move underscores Wood’s long‑term belief that Palantir will dominate a crucial portion of the AI tech stack despite its high price.
⚯ Michel de Cryptadamus ⚯
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