Cathie Wood buys $11 million of tumbling megacap tech stock

Cathie Wood, caput of Ark Investment Management, often adjusts her tech positions. She buys much erstwhile banal prices autumn and trims erstwhile they rally, locking successful short-term gains portion sticking to her semipermanent vision.

That’s what she conscionable did, adding shares of a megacap tech institution that’s down astir 30% year-to-date.

Last year, the flagship Ark Innovation ETF gained 35.49%, acold outpacing the S&P 500’s instrumentality of 17.88% successful the aforesaid period. But arsenic of April 10, Wood’s flagship Ark Innovation ETF (ARKK) was down astir 11% twelvemonth to date, portion the S&P 500 dropped 0.42%.

Wood gained a estimation aft the Ark Innovation ETF delivered a 153% instrumentality successful 2020. But her benignant besides brings achy losses successful bearish markets, arsenic seen successful 2022, erstwhile the Ark Innovation ETF tumbled much than 60%.

Those swings person weighed connected Wood’s semipermanent gains. As of April 10, the Ark Innovation ETF has delivered a five-year annualized instrumentality of -10.7%, portion the S&P 500 saw an annualized instrumentality of 12.2% implicit the aforesaid period, according to information from Morningstar.

Wood focuses connected high-tech companies crossed artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses person beardown maturation potential, though their volatility often causes fluctuations successful the Ark’s funds.

From 2014 to 2024, the Ark Innovation ETF wiped retired $7 cardinal successful capitalist wealth, according to a March 2025 investigation by Morningstar’s expert Amy Arnott. That made it the third-biggest wealthiness destroyer among communal funds and ETFs successful Arnott’s ranking. The expert hasn’t updated the 2025 ranking.

In a March 23 Bloomberg podcast, Wood says the planetary system is not heading into a downturn, but into what she calls a “great acceleration” driven by AI and different breakthrough technologies.

“We’re not going into the Great Depression, we’re going into the large acceleration,” Wood said, pointing to however past technological revolutions reshaped economical growth.

She noted that planetary existent GDP maturation averaged conscionable 0.6% betwixt 1500 and 1900, earlier the Industrial Revolution lifted it to astir 3% for much than a century. Now, she argues, a caller question of innovation could propulsion maturation overmuch higher.

Related: Cathie Wood buys $6.9 cardinal of surging tech stock

“We deliberation [technologies] are going to instrumentality maturation into the 7 to 8% range,” Wood said, adding that the fig whitethorn really beryllium conservative.

Wood besides noted that AI is driving down costs crossed industries.

“These technologies are deflationary,” she said. “AI grooming costs are dropping 75% per year, and inference costs are falling arsenic overmuch arsenic 85% to adjacent 98% annually.”