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Cathie Wood buys the dip on pandemic darlings Roku, Zoom, Roblox

Published 04/22/2022, 08:00 AM
Updated 04/22/2022, 08:35 AM
© Reuters. FILE PHOTO: Cathie Wood, founder and CEO of ARK Investment Management LLC, speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 13, 2021. REUTERS/Brendan McDermid/File Photo

(Reuters) - Star stock-picker Cathie Wood's Ark Invest this week snapped up shares of pandemic darlings including Roblox Corp, Roku (NASDAQ:ROKU) Inc and Zoom Video Communications (NASDAQ:ZM) that have fallen out of favor this year.

The asset manager's flagship ARK Innovation ETF has slumped 43% this year, lagging far behind the S&P 500's 7.7% decline as the prospect of aggressive U.S. policy tightening hammered the fund's hyper-growth stocks.

Over the week, ARK bought 100,642 shares of e-commerce firm Shopify (NYSE:SHOP) Inc, 329,073 of Zoom, 739,082 of gaming site Roblox and 575,648 of streaming device maker Roku.

Wood's shopping spree came after a shocking subscriber loss at Netflix Inc (NASDAQ:NFLX) triggered a selloff in stocks that thrived during COVID-19 lockdowns.

The asset manager shed more than half a million shares of Snap Inc (NYSE:SNAP) this week, ahead of the company's earnings. The Snapchat owner slipped nearly 2% in premarket trading on Friday after warning inflation could hurt revenue growth in the current quarter.

Last week, Wood reiterated her bullish stance on the fund's biggest holding, Tesla (NASDAQ:TSLA) Inc. ARK Innovation ETF's stake in Tesla is worth $969 million, or 10% of the fund's weight.

© Reuters. FILE PHOTO: Cathie Wood, founder and CEO of ARK Investment Management LLC, speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 13, 2021. REUTERS/Brendan McDermid/File Photo

The electric-car maker's stock is the only one among the fund's top 10 holdings that has climbed over the past year. The other nine - including Roku, Zoom and Teladoc (NYSE:TDOC) Health - have plunged between 22% and 62%.

Tesla's shares have climbed about 35% over the past year and rose 3% on Thursday after its results raced ahead of expectations.

Latest comments

Something is definitely wrong with her!
Fund manager who just yolos ans never changes strategies. Lol seriously hard to name 3 worse stocks to buy in current market.
if this had been someone else ...he ir she would have been fired by now for such comments and loss of wealth to investors ...
sweetheart you should wait until the interest rate hike for a better price
by then itd be priced in
If a fund manager is down 40% this person has no risk control and an inflated ego.
She has no idea what she’s doing. She’s caught up in her own hype because Wall Street made her a “”guru. She’s trying to chase gazelles running through the jungle. Good luck on that one!
Flagship ARK Innovation ETF has slumped 43% this year, lagging far behind the S&P 500's 7.7%. She is buying bottom priced growth stocks now. If she just stayed with S&P stocks much better results. but I like her current choices. Now will FOMC derail growth stocks?
wait til the hikes its not all the way priced in yet
She's only a "star" by the media portrays her that way. It's wokey woke man!!
No strategy. Pure gambling. Bigger losses coming.
Shes a big l.
It's a bear.... She needs to learn to play real estate bank.
L means looser. She should on the headline how not to trade. 60%~70% off from the fund's all-time high?
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