To The Moon

Hindenburg Research Company released a short report on Block, an American payment company, on Thursday, which caused the company's share price to plummet by nearly 15%, and once fell by more than 20% in intraday trading.

However, this did not affect Cathy Wood's view of Block. Her Ark Investment Management Company bought more than 338,000 Block shares that day, which was worth $20.9 million at the closing price.

Wood's three funds-Ark Innovation ETF, next Generation Internet ETF and Financial Technology Innovation ETF-made purchases. Block shares rank among the top five in the weight of these three funds.

Wood's fund also sold more than 139,000 shares of Tesla (192.22, 1.07, 0.56%) on Thursday, worth more than $26.8 million. The sale sparked curiosity because the Ark Fund had been buying Tesla shares until recently, and last week bought Tesla shares worth $4.6 million.

Earlier this week, Wood said in an interview that Tesla and Block are two stocks she highly values.

Block is reducing the cost of financial services and developing a closed-loop ecosystem, she said, adding that the company could be one of the biggest winners in the digital wallet field.

Wood said at the time that "their customers don't even need to deal with banks. Cash App and Square will solve this problem and become real financial services companies."

Wood's fund spent a total of $21 million to buy Block shares, while they also invested $18 million to buy CoinbaseGlobalCOIN shares,-14.05%, down 14% after reporting that they might be sued by the US Securities and Exchange Commission.

The fund manager funded the takeover by reducing its stake in Tesla TSLA, +0.56 pc, although the electric car maker remains well ahead of the ARK Innovation ETF.

Wood believes that people have ignored Tesla's influence in the field of artificial intelligence (AI). "It may be one of the most important beneficiaries of AI, eventually emerging in the form of self-driving taxi platforms that are driven by AI," she said.

Wood also said Tesla was able to reduce the cost of electric vehicles faster than competitors, which will help accelerate the transition from internal combustion engine vehicles to electric vehicles.