Cathie Wood's Underperforming Flagship Fund Dumps Another Staple Stock Following Nvidia Exit: Social Media Recalls Jim Cramer's Comments From 2 Years Ago
Portfolio Pulse from Shanthi Rexaline
Cathie Wood's Ark Invest has divested its entire stake in Zoom Video Communications from its ARK Innovation ETF, following a similar exit from Nvidia earlier this year. Despite Zoom's recent 13% rally, the stock has been underperforming since its pandemic peak. ARKK has also seen a significant decline, down nearly 3% on Thursday and over 15% year-to-date.
August 23, 2024 | 6:46 am
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NEGATIVE IMPACT
ARKK ETF has divested from Zoom Video, following a similar exit from Nvidia. The ETF is down nearly 3% on Thursday and over 15% year-to-date, underperforming the S&P 500.
ARKK's divestment from Zoom and previous exit from Nvidia suggest strategic shifts. The ETF's significant decline compared to the S&P 500 indicates potential continued underperformance.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Zoom Video Communications saw a 13% rally but was completely divested from Ark Invest's ARK Innovation ETF. The stock has been underperforming since its pandemic peak.
Despite a recent rally, Ark Invest's complete divestment from Zoom indicates a lack of confidence in its future performance. The stock has been underperforming since its pandemic peak, suggesting limited short-term upside.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Ark Invest previously exited Nvidia before its significant rally driven by AI trends. This highlights potential missed opportunities for ARKK.
Ark Invest's exit from Nvidia before its rally suggests a misjudgment in timing, as Nvidia has since benefited from AI trends. This could reflect on ARKK's strategic decisions.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50