Investors Are Losing Faith in Cathie Wood’s ARK Innovation

The Wall Street Journal2022-12-12

Investors who bought the dip inCathie Wood‘sARK InnovationARKK-1.45%decrease; red down pointing triangleexchange-traded fund have been punished this year. Some finally appear to belosing their ...

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Comments

Gcwj
2022-12-13
Gcwj
Ark
tungngie
2022-12-13
tungngie
Oh no..
Calvinq
2022-12-13
Calvinq
ARKK 🚀
Pluto891
2022-12-13
Pluto891
[LOL] [Miser]
Chris68
2022-12-12
Chris68
👌
- Chris68:
  👌
jiunnnnn
2022-12-12
jiunnnnn
Too late
- DonWang:
  Yup
- MyMelody:
  Yeah

Leave a comment

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Some finally appear to belosing their ...</p>\n\n<a href=\"https://www.wsj.com/articles/investors-are-losing-faith-in-cathie-woods-ark-innovation-11670846139?mod=rss_markets_main\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARKF","symbol_name":"ARK Fintech Innovation ETF","start_time":0,"source_url":"https://www.wsj.com/articles/investors-are-losing-faith-in-cathie-woods-ark-innovation-11670846139?mod=rss_markets_main","article_id":"1195161646","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1195161646","pubTimestamp":1670851416,"sourceInfo":{"source_id":"wsj_highlight","name":"The Wall Street Journal"},"weMediaInfo":null,"summary":"Investors who bought the dip inCathie Wood‘sARK InnovationARKK-1.45%decrease; red down pointing tria","collect":0,"end_time":0,"defaultTopTitle":"wsj.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ARKF":"ARK Fintech Innovation ETF","ARKG":"ARK Genomic Revolution ETF","ARKK":"ARK Innovation ETF"},"translate_title":"投资者对凯西·伍德的方舟创新失去了信心","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARKF":0.9,"ARKG":0.9,"ARKK":0.9},"content_text":"Investors who bought the dip inCathie Wood‘sARK InnovationARKK-1.45%decrease; red down pointing triangleexchange-traded fund have been punished this year. Some finally appear to belosing their conviction.Shares of the fund, a pandemic-era favorite largely made up of unprofitable,growth-oriented technology companies, are down 63% this year. While the S&P 500 index has rallied 10% since mid-October to cut its 2022 losses to 17%, Ms. Wood’s flagship fund is hovering near a five-year low.Investors heeding a “buy the dip” rallying cry poured money into the fund in each of the first five months of the year—a net $1.89 billion—as markets tumbled. Since then, their enthusiasm has waned. They pulled money in three of the next six months, or a net $76.5 million, according to FactSet. On Nov. 30 alone, they yanked $146 million, which was among the largest single-day outflows of the year.Investors have bailed out ofgrowth stocksand other speculative assets en masse this year. In a rising yield environment in which they suddenly have options for earning returns with little risk, many are losing their appetite for money-losing companies promising the chance of returns in the future.The three largest holdings in the fund—which is known by its ticker symbol ARKK—areZoom Video CommunicationsInc.,ZM-0.28%decrease; red down pointing triangleTeslaInc. andExact SciencesCorp., companies Ms. Wood has said have the potential to change the world.Shares of Zoomand Tesla have lost about half their value this year, while Exact Sciences, an unprofitable provider of cancer screening and diagnostics tools, is down 43%. Ms. Wood has also been a proponent of bitcoin, whichhas fallen about 75%from its November 2021 peak.Cathie Wood predicts cryptocurrency growth and has been buying shares of Coinbase.PHOTO:SHANNON STAPLETON/REUTERSSimilar bets netted huge rewards in the low-rate environment of 2020 and 2021. ARKK shares more than doubled in 2020 beforeworries about inflation—and the prospect of higher rates—stalled their advance.“The bet was that free money would last indefinitely, and there doesn’t seem to have been a risk-management game plan,” saidJon Burckett-St. Laurent, senior portfolio manager at Exencial Wealth Advisors.For her part, Ms. Wood continues to shrug off the critics and stand by her investments. She tweeted recently that companies in her fund are “sacrificing short-term profitability for exponential and highly profitable long term growth.” During a Bloomberg Television interview in November, she predicted theprice of bitcoinwill hit $1 million by 2030, a roughly 6,000% increase from current levels.Ms. Wood has called for Zoom, ARKK’s largest holding, to approach $1,500 a share in 2026, based in part on expectations of a worker backlash againstreturning to offices. Her bear case is for shares to trade at $700. They closed Friday at $72.16.Through a spokeswoman, Ms. Wood declined to comment.While many on Wall Street are cutting risk and bracing for a recession, Ms. Wood has been adding to riskier positions in recent weeks, buying more shares of cryptocurrency exchangeCoinbase GlobalInc. and a bitcoin futures ETF.ARKK added 931,000 shares of Coinbase worth roughly $43 million in November, according to FactSet. ARKK is the second-largest holder of Coinbase shares, which are down 84% year-to-date. Another of Ms. Wood’s funds, theARK Next Generation Internet ETFARKW-0.70%decrease; red down pointing triangle, increased its exposure to bitcoin with the purchase of 608,000 shares of theGrayscale Bitcoin Trust, worth $6 million. GBTC trust shares are down 77% this year.Some investors say Ms. Wood’s fund still doesn’t look cheap, even after its sharp share-price declines. Since a majority of the companies it holds are unprofitable, traditional valuation measures such as price-to-earnings ratios are irrelevant.“I think with the flows into Cathie’s fund, there’s a knee-jerk reaction from some investors when something’s down that much,” saidBill Callahan, investment strategist at Schroders. “But that’s not always the right play. All of these stocks work in a relatively low nominal growth, low rate environment. It just doesn’t seem like that’s where we’re going to be.”Data from popular retail brokerage Webull Financial LLC shows that customers have added cash on anet basis to ARKKthis year, but the number of accounts holding the fund is shrinking.Since Jan. 1, the number of accounts holding the fund is down 8%, Webull Chief ExecutiveAnthony Deniersaid. By mid-November, the total had fallen to the lowest level of the year.“The big change started happening in July,” Mr. Denier said. “It’s been steadily declining.”ARKK could see another hit come in the coming weeks, Mr. Denier said, if savvy individual investors target their holdings for what is known as tax-loss harvesting—selling losing positions before year-end to realize losses and write them off as a tax loss.Ms. Wood continues to try to sell investors on the future, but with returns plunging, more of them have questions.“With Cathie Wood’s model, there’s no question that if one of her companies cures cancer, that stock will go through the roof,” saidBrian Mulberry, client portfolio manager at Zacks Investment Management. “It’s just simply a question of, how do you get from here to the other side of the rainbow?”","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":9923481344,"gmtCreate":1670894071789,"gmtModify":1676538454951,"author":{"id":"4099126468711710","authorId":"4099126468711710","name":"Gcwj","avatar":"https://static.tigerbbs.com/01f02847a2734e30f9c0ed8ef62da392","vip":1,"hat":"https://static.tigerbbs.com/7b75ce0c34afff716602792a5d0929dd","crmLevel":1,"crmLevelSwitch":1},"htmlText":"Ark","listText":"Ark","text":"Ark","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9923481344","repostId":1195161646,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9923537094,"gmtCreate":1670885951719,"gmtModify":1676538451440,"author":{"id":"3576456086582950","authorId":"3576456086582950","name":"tungngie","avatar":"https://static.tigerbbs.com/988bf89c2727c98e8bd27200a813c1b2","vip":1,"crmLevel":4,"crmLevelSwitch":1},"htmlText":"Oh no..&nbsp;","listText":"Oh no..&nbsp;","text":"Oh no..","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9923537094","repostId":1195161646,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9923224167,"gmtCreate":1670867563559,"gmtModify":1676538449556,"author":{"id":"3581665869451416","authorId":"3581665869451416","name":"Calvinq","avatar":"https://static.tigerbbs.com/3c005973d00b3597177b005554456e28","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":2,"crmLevelSwitch":0},"htmlText":"ARKK 🚀","listText":"ARKK 🚀","text":"ARKK 🚀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9923224167","repostId":1195161646,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9923261955,"gmtCreate":1670863879877,"gmtModify":1676538449064,"author":{"id":"3581937910767045","authorId":"3581937910767045","name":"Pluto891","avatar":"https://static.tigerbbs.com/c9963f2ef3d3ad2aff28340461d3d6d0","vip":1,"crmLevel":2,"crmLevelSwitch":1},"htmlText":"[LOL]&nbsp;[Miser]&nbsp;","listText":"[LOL]&nbsp;[Miser]&nbsp;","text":"[LOL] [Miser]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9923261955","repostId":1195161646,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9923231540,"gmtCreate":1670860684880,"gmtModify":1676538448168,"author":{"id":"3575974639321365","authorId":"3575974639321365","name":"Chris68","avatar":"https://static.tigerbbs.com/1ae39a12c3ba237f3b001689ec9a549b","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"👌&nbsp;","listText":"👌&nbsp;","text":"👌","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9923231540","repostId":1195161646,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":105178260,"gmtCreate":1670860696567,"gmtModify":1670860709903,"authorId":3575974639321365,"author":{"id":3575974639321365,"authorId":3575974639321365,"name":"Chris68","avatar":"https://static.tigerbbs.com/1ae39a12c3ba237f3b001689ec9a549b","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9923231540,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">👌<span class=\"Apple-converted-space\"> </span></span>","text":"<span class=\"s1\">👌<span class=\"Apple-converted-space\"> </span></span>","html":"<span class=\"s1\">👌<span class=\"Apple-converted-space\"> </span></span>"}],"langContent":"EN"},{"id":9923670439,"gmtCreate":1670856587321,"gmtModify":1676538446981,"author":{"id":"4088132666965010","authorId":"4088132666965010","name":"jiunnnnn","avatar":"https://community-static.tradeup.com/news/24f28c4d762ae6f62b32956f1633ebdf","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Too late","listText":"Too late","text":"Too 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