Cathie Wood Reinforces Faith In Tesla Despite Stock's Slump Following Q4 Double Miss, Ark Buys Whopping $66M Worth Of EV Maker's Shares
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Invest purchased $66 million worth of Tesla shares after the company's stock slumped following a Q4 earnings miss. Ark's ETFs, ARKK and ARKW, bought 182,541 and 177,870 Tesla shares respectively. Despite Tesla's recent downtrend and a double miss in Q4 earnings, Wood remains bullish on Tesla, projecting a $2,000 stock price by 2027, largely based on the potential of its robotaxi service. Tesla is a major holding in both ARKK and ARKW, which saw a slight increase in their share price.
January 27, 2024 | 7:23 pm
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POSITIVE IMPACT
ARKK may experience a positive impact in the short term due to the high-profile purchase of Tesla shares, reinforcing the ETF's growth-focused strategy.
The purchase of Tesla shares by ARKK could attract investors who are aligned with Cathie Wood's investment strategy and bullish outlook on Tesla, potentially leading to an uptick in ARKK's share price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
ARKW, having also invested in Tesla shares, may see a similar positive short-term impact as ARKK, given the shared investment philosophy and Cathie Wood's influence.
ARKW's purchase of Tesla shares indicates a commitment to the same growth strategy as ARKK, which may result in a positive short-term reaction from investors who are optimistic about Tesla's future.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Tesla's stock may see short-term volatility due to the Q4 earnings miss but could be buoyed by Ark Invest's significant purchase and Cathie Wood's bullish long-term outlook.
Ark Invest's purchase of Tesla shares demonstrates confidence in the company's long-term prospects, which may counteract the negative sentiment from the Q4 earnings miss in the short term. Cathie Wood's projection of a $2,000 stock price by 2027 could also influence investor sentiment positively.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90