Wood Sister: Betting on AI stocks other than NVIDIA, has cut Twitter's stake by 47%!

"Cathie Wood, the 'Wall Street Queen of Stocks' and founder of Ark Investment, is well-known for her disruptive innovation in investment. During the COVID-19 pandemic in 2020, she gained fame by going all-in on technology stocks.

Recently, in an interview with the media, Cathie Wood revealed the latest developments of her flagship fund, ARK: she has reduced her stake in Twitter by 47% and is bullish on cryptocurrency operator Coinbase.

Betting on AI Stocks Beyond Nvidia

Nvidia is currently the most obvious bet in the field of AI. However, Cathie Wood is now buying stocks of other AI companies, hoping that these companies can benefit from the AI revolution and achieve greater growth.

The AI feast has propelled Nvidia to a trillion-dollar market value. However, Cathie Wood's flagship fund had completely sold off its Nvidia holdings in early January, missing out on a $560 billion rebound. Recently, she defended her decision to sell Nvidia, stating that Nvidia's market value has reached 25 times its revenue, and the decision was purely based on valuation judgment.

Cathie Wood said:

This chip manufacturer has already taken off and left other companies that will become huge beneficiaries of artificial intelligence behind. We are basically reallocating to AI stocks that are not so obvious.

Her new investment ideas include Teradyne, a company that designs semiconductor testing products and services, as well as a significant position in AI cloud communications provider Twilio.

Reducing Twitter Holdings by 47%

Since Elon Musk acquired the social media platform Twitter and privatized it, ARK Invest has reduced its stake in Twitter by 47%.

Cathie Wood stated:

We highly value fair valuation and had to reduce our holdings in Twitter. However, this does not mean that our fundamental views and beliefs in long-term investment returns have changed. We still have confidence in Twitter and its long-term prospects.

It is worth mentioning that after Musk's $44 billion acquisition of Twitter, the platform is facing heavy debt burdens and a sharp decline in advertising business. Musk stated on Twitter last week that advertising revenue has dropped by about 50% and the company's cash flow is negative.

Meanwhile, Twitter is also facing threats from the new application Threads, launched by Meta this month, which is a direct competitor to Twitter. Additionally, according to a document from April, Fidelity Investments valued Twitter at about one-third of Musk's acquisition price."

Bullish on Cryptocurrency Operator Coinbase

After the court ruled that XRP is not a security when sold on cryptocurrency exchanges, Miss Wood has significantly raised the long-term target price for Bitcoin from $1 million to $1.5 million, and expressed her optimism about Coinbase (the second largest holding in ARKK).

According to Bloomberg's compilation of data, almost all ARK ETFs have seen positive inflows in the past month, with ARKK alone receiving a net inflow of $247 million just last week. However, year-to-date, despite the performance rebound, all ETF funds except one have experienced outflows.