Cathie Wood Explains Why She Sold Nvidia 'At The Bottom,' But More Importantly Tells Why She Purchased The Shares In The First Place
Portfolio Pulse from Benzinga Neuro
Cathie Wood, founder of ARK Invest, defended the sale of Nvidia (NVDA) shares by highlighting the fund's early investment in NVDA at around $5 in 2014 and the substantial profits made since then. Despite selling nearly $4 million worth of NVDA shares after a post-earnings rally, Wood emphasized ARK's successful early investment strategy. NVDA shares have surged 236.5% over the past 12 months, significantly outperforming ARK's flagship fund, ARK Innovation ETF (ARKK), which has seen much lower returns. ARK's decision to sell NVDA shares has been criticized, especially as NVDA's value soared, adding $273 billion in a single day after its latest earnings beat.
February 27, 2024 | 1:30 am
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NEGATIVE IMPACT
ARK Innovation ETF (ARKK) has underperformed compared to NVDA, with significantly lower returns over the past year and a nearly 8% decline this year.
ARKK's decision to sell Nvidia shares early has been criticized, especially as Nvidia's stock continued to soar. This decision, along with the fund's underperformance compared to Nvidia, may lead to negative sentiment among investors regarding ARKK's strategy.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
Nvidia has seen a significant surge in its stock price, with a 236.5% increase over the past 12 months and a notable rise after its latest earnings beat.
Nvidia's stock price has significantly benefited from its strong performance in AI and gaming chips, as well as beating revenue and earnings expectations. The recent earnings beat and the company's continued success in its sector are likely to keep investor interest high.
CONFIDENCE 85
IMPORTANCE 95
RELEVANCE 90