Cathie Wood, the CEO of investment firm Ark Invest seems to be interested in growth stocks for 2022. According to a tweet, Wood invested in high-growth stocks in the first week of the year while selling shares in EV maker Tesla (NASDAQ: TSLA), DocuSign, and social networking company Twitter.
Notably, Wood has offloaded a massive stake in Tesla since September, selling shares worth $140 million in the last week. Additionally, Ark sold DocuSign shares worth $180 million and $95 million worth of Twitter shares.
Instead, the CEO splurged on growth stocks like Block, Inc. (SQ), Roku, Inc. (ROKU), Sea Limited (SE), Roblox Corporation (RBLX), and Cloudflare, Inc. (NET), with huge investments. The firm is also stacking up shares of U.S.-listed Chinese electric vehicle maker Xpeng, Inc. (XPEV)
Wood’s flagship fund, ARK Innovation ETF (ARKK), focuses on companies with innovative products. The ETF jumped over 152% in 2020, beating the NASDAQ’s gain of 43.6%. However, it underperformed the index in 2021, falling 24% compared to the NASDAQ’s surge of 21.4%.
“Disruptive innovation is often not priced correctly by traditional investment strategies because people may not understand how big the ultimate opportunities are going to be. They aren’t sizing the opportunity and they aren’t analyzing the disruption,” Wood commented on the company’s website.
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