NEWSLETTER
Cathie Wood, Chief of Investment Management of ARK, is usually directed to technological actions with high “disruptive” potential.
It frequently adjusts its holdings around the profits of a company, either increasing or cutting positions in response to financial results and market performance.
That is what she did this week. She bought a technological action before and after her profits.
Do not miss the move: Subscribe to the free newspaper of Thestreet
Sometimes its strategy works: the ark innovation eTF flagüento (Sheet) has returned 10.5% this year as of February 7, while the Standard & Poor's 500 index and the Nasdaq compound index have earned approximately 2.5% and 1.1%, respectively.
The opinions about wood are divided. The supporters see her as a technological visionary, especially after she delivered an extraordinary return of 153% in 2020.
Related: The veteran analyst makes a surprising pivot about AMD's actions after the earning shock
However, its long -term performance has raised doubts about whether your aggressive approach is sustainable.
As of February 7, 2025, the ETF of Innovation ARK, with $ 6.3 billion under administration, has delivered an annualized return of 4.69% and a five -year yield of only 2.87%.
In comparison, the Nasdaq compound has a three -year annualized yield of 12.57% and a five -year yield of 16.3%.
<img src="https://www.thestreet.com/.image/c_fit%2Ch_800%2Cw_1200/MjAwMDA0NjU4Nzc5OTIzNTY0/bitcoin-2022-conference-draws-cryptocurrency-industry-professionals-and-investors-to-miami.jpg”>
Cathie Wood's investment strategy explained
Cathie Wood's investment strategy is simple: its ETF Ark generally buy shares in emerging high –tech companies in fields such as artificial intelligence, blockchain, biomedical and robotic technology.
Wood says that these companies have the potential to remodel industries, but their volatility leads to large fluctuations in Ark's funds.
Amy Arnott, Morningstar Research Services portfolio strategist, estimated that Ark Innovation ETF cleared $ 7.1 billion of shareholders of its launch in 2014 to 2023.
That put the third ETF in the list of the greatest mutual funds that destroy wealth and ETF for the decade that ends in 2023. The analyst has not updated the list by 2024.
But things can be different as Donald Trump returns.
RELATED: The Net Heritage of Cathie Wood: The wealth and income of the CEO of the CEO of Ark Invest
Todd Sohn, ETF and technical strategist of Strategas Securities, said that since Trump's re -election in 2024, the Ark Innovation ETF and the ETF of the Internet of Next Generation Ark (Arkw) They have seen significant profits.
Since November 5, the two ETFs have returned 30% and 35%, respectively.
“We still firmly believe that Arkw is such a good proxy for Trump 2.0 as you could find, with great exposure to bitcoin, cryptographic derivatives, Tesla and Defense,” Cohn told Marketwatch.
Wood recently shared optimism about a change to the most loose regulation under the presidency of Trump.
“What the new administration is doing is changing fear with optimism,” Wood told Bloomberg on January 22. It is “highly underestimated how important deregulation will be to unleash animal spirits. We are quite excited about this.”
Not all investors echo Wood's trust. During the last year, the ETF of Ark Innovation has seen a net exit of almost $ 3 billion, with $ 24 million leaving the fund in the last month, according to the ETF VettaFi investigation firm.
Cathie Wood Buy $ 9 million in Qualcomm shares after earnings
On February 6, Wood's Ark Innovation ETF bought 121,696 Qualcomm Inc shares (Qocom) .
That piece of shares was valued at $ 9.13 million as of February 7.
Related: Cathie Wood sells $ 19 million in increasing technological actions before profits
That followed its previous purchase of the Qualcomm shares before the launch of profits of February 5 of the company.
From January 27 to January 30, Wood bought 29,555 Qualcomm shares for four consecutive sessions.
Qualcomm is known for its Snapdragon and Chips Modem processors, which feed millions of smartphones, from Samsung and Google to Xiaomi.
Even apple (AAPL) which is developing its own modem chips to replace the Qualcomm components, it still depends on Qualcomm technology for the iPhone.
But Qualcomm's true cash cow has been its patents.
It has key patents for mobile communication, such as 5G, which means that companies like Apple and Samsung pay Qualcomm a rate for each phone sold, even if they do not use their chips.
For the first fiscal quarter that ends on December 29, Qualcomm reported adjusted profits of $ 3.41 per share, exceeding the prognosis of the $ 2.97 analyst. The income also exceeds the forecasts, reaching $ 11.67 billion, compared to the expectations of $ 10.9 billion.
His second quarter guide also exceeded expectations. The company projects adjusted EPS of $ 2.70– $ 2.90 (consensus $ 2.71) and income of $ 10.2– $ 11.0 billion (consensus $ 10.36 billion).
Wall Street Chris Versace veteran merchant Said in Thestreet Pro that the Qualcomm Chips business likes even more after reviewing the company's profit report.
Qualcomm chips sales are not just for smartphones now. They are now used in autonomous cars, PC with ai, intelligent domestic devices and even VR headphones.
The revenues of the chips manufacturing business (QCT) increased 20% to $ 10.1 billion. The fastest growth in this segment is its automotive business, which grew 61% to $ 961 million in sales.
“The segment benefited from the record income of smartphones, but most importantly, in our opinion, it showed remarkable progress in Qualcomm efforts to diversify its income flow away from that final market,” he wrote.
More prognostics in the 2025 stock market
- The veteran merchant who correctly chose Palantir as main actions in '24 reveals the best actions for '25
- 5 Quantum computing actions are addressed to investors in 2025
- Goldman Sachs chooses the best sectors they have in 2025
- The S&P 500 forecast of all Wall Street analysts for 2025
TD Cowen raised its target price in Qualcomm to $ 195 of $ 180 with a purchase rating after earnings, Thefly.com reported.
Qualcomm shares closed to $ 167.96 on February 7. The action has increased 9.3% in the year in which the Nasdaq compound yield and S&P 500 indices will be carried out.
As of February 7, Qualcomm is not in the 10 main holdings of Ark Innovation ETF.
RELATED: VETERAN FUND MANAGER ISSUE TOD S&P 500 WARNING FOR 2025
