Cathie Wood got it wrong again? Sold NVIDIA before the earnings report and bought Zoom!
NVIDIA's Earnings Report has been released, once again stunning Wall Street. In pre-market trading, NVIDIA's stock price rose by 8%. Wood had previously reduced a portion of their NVIDIA holdings in January.
Renowned as the "Tech Stock Goddess," Cathie Wood chose to sell her stocks before NVIDIA's earnings report and simultaneously bought more Zoom stocks.
ARK Invest, led by Cathie Wood, purchased Zoom stocks worth over $8 million and reduced its holdings in NVIDIA before the release of NVIDIA's earnings report.
It is worth noting that Wood had previously reduced her NVIDIA holdings in January.
NVIDIA's earnings report has been released, once again impressing Wall Street. Pre-market trading saw NVIDIA's stock price rise by 8%. This proves that Wood seems to have made another mistake.
Buying Zoom, Selling NVIDIA
According to Tuesday's trading update, ARK purchased 122,831 shares of Zoom through its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW).
ARKW also sold 2,230 shares of NVIDIA, valued slightly above $1 million.
Although Zoom's earnings and revenue exceeded expectations, Wall Street analysts are not overly optimistic. They point out that the company lacks visibility and express concerns that macroeconomic pressures may have a negative impact on its performance.
However, Wood remains optimistic. She believes that as the darling of the COVID-19 pandemic era, this company can reestablish its position in a normal world.
As for NVIDIA, Wood's ARK Innovation Fund sold NVIDIA in January, missing out on most of the 212% surge in NVIDIA's stock price so far in 2023.
