In defiance of the customs sale, Cathie Wood has obtained these two specific stocks.
Chatting with the Market Mover: Cathie Wood dollops cash on Robinhood and GitLab, twice!
The ongoing U.S. tariffs, initiated by Donald Trump, have sent panic through global exchanges since last Thursday. Most investors are steering clear of stocks, fearful of losses. But not Cathie Wood, the star investor, who's known for her gutsy moves. A recent update from her firm ARK Invest reveals that she's not just selling some stocks, but also buying two in a bold double movement.
Cathie Wood's Double Down on Robinhood and GitLab
Wood's updated portfolio shows she splurged on Robinhood shares worth close to $330,000 and GitLab shares valued at around $143,000 on Wednesday. The next day, she added more of both – almost 1.4 million dollars' worth of Robinhood shares and nearly 300,000 GitLab shares.
Investing in these two stocks aligns with Cathie Wood's usual tactics. She's all for companies with a second wind or signs of undervaluation, and both Robinhood and GitLab fit the bill. Both have faced sell-offs lately, but they're less likely to take a beating from tariffs than other sectors.
Selling Off Ground:
It's not all about buying though, as Wood did sell off some stocks on Wednesday and Thursday too. Prime Medicine, Repare Therapeutics, and UiPath were among the sell-offs. Bear in mind, ARK funds haven't been performing too hot recently, so investors should approach Wood's stock tips with caution.
Diggin' Deeper:
Cathie Wood's continued investment in Robinhood and GitLab demonstrates her strategic focus on technologies with disruptive power and innovative companies. Here's why:
- Disruptive Tech: Robinhood excels in fintech, shaking up the financial market with commission-free trading. GitLab is a significant player in DevOps and software development platforms, offering cutting-edge solutions for software development and collaboration.
- Volatility and Opportunity: Market turbulence creates room for purchasing undervalued stocks that could flourish long-term.
- Market Predictions: Ark Invest's recent sizeable investments in companies like Robinhood and GitLab suggest a positive outlook for these sectors[1]. This implies that Wood and her team are confident about the future of these companies, even amid market uncertainty.
- Tariff Resilience: Though U.S. tariffs and broader geopolitical issues can influence the tech and finance sectors, companies like Robinhood and GitLab are less tariff-sensitive compared to those in manufacturing sectors, making them attractive options for investors looking for growth in less-vulnerable sectors.
- Investment Strategy: ARK Invest follows a strategy of investing in companies fueled by innovative tech expected to drive future growth, even amid temporary market fluctuations. This approach involves sticking to firms with long-term growth potential, despite market turmoil.
In a nutshell, Cathie Wood's continued investments in Robinhood and GitLab are rooted in their disruptive technologies, growth potential, and ability to weather market volatility. While U.S. tariffs and recent sell-offs pose challenges, ARK Invest's focus on long-term growth opportunities likely forms the basis for these investment decisions.
[1] "ARK Invest Makes Major Moves in Fintech, Cloud, and Digital Transformation Sectors," March 10, 2021, Ark Invest.
- Despite the ongoing U.S. tariffs causing worry among investors, Cathie Wood, the bold investor, has ventured further into technology-driven industries, purchasing substantial amounts of Robinhood and GitLab shares, demonstrating her belief in these companies' resilience and growth potential.
- Cathie Wood's recent investments in Robinhood and GitLab, two firms that excel in fintech and software development respectively, further support the ARK Invest's strategy of backing innovative companies with disruptive technologies, even in the face of market volatility, as they aim to capitalize on long-term growth opportunities.
