Counter-cyclical bottom fishing! "Cathie Wood" buys the dip in Tesla, Coinbase, and other tech stocks
This week, U.S. stocks experienced a sharp decline, and "Cathie Wood" seized the opportunity to buy on the dip, increasing her holdings in technology stocks such as Tesla, Coinbase, and Robinhood. Despite the pressure on the ARKK and ARKF ETFs, Wood still purchased 269,864 shares of Robinhood, 64,358 shares of Coinbase, 79,318 shares of Tesla, and 152,234 shares of Palantir during the market downturn. Wood believes that the current market turbulence is the final stage of a "rolling recession."
According to Zhitong Finance APP, this week, the US stock market fell into a "Black Monday," experiencing a sharp decline, which caused significant losses for Cathie Wood's Ark Invest. The sharp drop in the technology sector put immense pressure on the exchange-traded funds (ETFs) managed by Ark Invest and affected several companies heavily weighted in their portfolios. However, Wood and her team seized the opportunity to buy the dip, increasing their positions in key stocks such as Robinhood (HOOD.US), Coinbase (COIN.US), Tesla (TSLA.US), and Palantir Technologies (PLTR.US).
On Monday, Robinhood's stock price plummeted by 19.7%, but Wood took the opportunity to purchase 269,864 shares of the online brokerage in her flagship product, the Ark Innovation ETF (ARKK), which itself also fell by 8.7% that day.
In addition to Robinhood, Ark Invest also increased its holdings in Coinbase. On that day, as Bitcoin's price fell below $80,000, Coinbase's stock closed down 17.5%. Ark Invest bought a total of 64,358 shares across ARKK and the Ark Fintech Innovation ETF (ARKF).
Tesla also faced its largest drop since September 2020, falling by 15.4%. However, Wood and her team did not back down, purchasing 79,318 shares of the electric vehicle giant and incorporating them into the holdings of ARKK and the Ark Autonomous Technology & Robotics ETF (ARKQ).
On Monday, Palantir's stock price dropped by 10%, but Wood again took advantage of the market downturn, buying an additional 152,234 shares in ARKK and ARKF ETFs.
Wood posted on social media that the current market turmoil is merely the final stage of a "rolling recession," which will provide the Trump administration and the Federal Reserve with greater flexibility than investors expect, paving the way for a "deflationary boom in the second half of this year."
On Tuesday, Tesla closed up 3.79%, Robinhood closed up 2.05%, Coinbase closed up 6.95%, and Palantir closed up 2.19%.
Through these actions, Ark Invest practiced its long-held investment belief that even in the face of market volatility, these innovation-driven companies still represent high-quality targets with buying value
