Latest news with #ARKInvestmentManagement
Mint
3 days ago
- Business
- Mint
Musk is ‘dialing back' on conflict with Trump under regulatory threat, says ARK CEO Cathie Wood
Tesla CEO Elon Musk and investors are beginning to understand more how much the U.S. government has control over the companies that Musk's running, said Cathie Wood, CEO of asset management firm ARK Investment Management, in a video published late Friday. Wood's comments come after Musk departed the Department of Government Efficiency. On Tuesday, Musk criticized Trump's 'One Big Beautiful Bill," saying it would increase the national deficit and undermine DOGE's cost-cutting efforts. In response, Trump questioned Musk's contributions and threatened to cancel federal contracts with Musk's companies, including Tesla and SpaceX. On Thursday, Musk alleged that Trump appeared in unreleased Jeffrey Epstein files. Trump dismissed Musk as having 'lost his mind." On the same day, Musk also threatened to decommission Dragon spacecraft, a space capsule used to transport astronauts and supplies to and from the International Space Station. But a few hours later, he pulled back the threat, saying he wouldn't follow through. This, according to Wood, is a sign that Musk is backing down from his conflict with Trump. This public rift between Musk and Trump will have deep implications for not only U.S. politics, but also Musk's business ventures. Investors are worried that a worsening relationship between the two could lead to a less friendly regulatory environment for companies Musk is involved with. SpaceX has $22 billion in government contracts, said Wood. She added that regulation of autonomous taxi platforms could impact the speed of their rollout—which could impact the robo-taxi service Tesla plans to launch in Texas later this month. (Neuralink, another Musk-owned company that is developing brain-computer interfaces, is subject to FDA regulation, as well.) It's possible that the fight with Trump was orchestrated by Musk as part of a plan to disengage from the government and being associated with the Republican party, said Wood, especially as Trump is acting tough on China—an important market for Tesla both in terms of consumption and production. 'He certainly doesn't want to be impaired there," said Wood. Tesla didn't immediately respond to Barron's request for comment. Regardless, Wood remains confident in Musk, noting that he 'works really well under pressure." Musk has said that his role is to help the U.S. get out of a budget deficit through accelerated economic growth. Wood thinks the board at Tesla should encourage him to get back to that priority. In terms of her own investment with Tesla, Wood said she is used to volatility in her portfolios—and has been adjusting her holdings in the stock to take advantage of such dramatic price moves. She noted that ARK net sold nearly half a billion dollars of Tesla shares after the 2024 presidential election, expecting some turbulence down the road. 'We try to use the volatility to our advantage," she said, 'Dialing down exposure as the stock soared is part of active management in the [exchange-traded fund] wrapper." The fallout between Musk and Trump propelled Tesla stock to drop 14% on Thursday, wiping out more than $150 billion in market value. Share prices recovered somewhat on Friday, with the stock finishing 3.7% higher. Wood has been a long-time Tesla bull, and believes that the electric vehicle company can dominate the highly profitable and scalable robo-taxi business—on-demand rides with driverless cars—thanks to its leadership in autonomous driving technology. She has a price target of $2,600 for Tesla stock by 2029, nearly nine times its current price. By the end of the first quarter, ARK owned nearly 3.3 million shares of Tesla stock worth $928 million. While that's only 0.1% of Tesla's total shares outstanding, it made up 7.6% of the firm's total holdings, according to the firm's 13F filings. Some of ARK's funds have even higher exposure. Tesla is the top holding of the ARK Innovation ETF, the company's flagship fund, with a 10.3% weight as of Friday. The stock also makes up 10.8% of the ARK Autonomous Technology & Robotics ETF and 6.9% of the ARK Next Generation Internet ETF. Write to Evie Liu at
Yahoo
28-05-2025
- Business
- Yahoo
1 Unstoppable Cryptocurrency to Buy Before It Soars 2,101%, According to Cathie Wood's ARK Invest
Noted technology investor Cathie Wood just issued a new long-term forecast for Bitcoin. In ARK's new April report, it detailed a series of catalysts that she thinks could drive Bitcoin to $2.4 million by 2030. That implies a return of 2,101% from here, but I'm not so sure the prediction is realistic. 10 stocks we like better than Bitcoin › Cathie Wood is the chief executive officer of ARK Investment Management, which operates several exchange-traded funds (ETFs) focused on disruptive technologies. Cryptocurrencies are an area of focus for ARK, and it was one of the first firms to receive approval from the Securities and Exchange Commission (SEC) to launch a Bitcoin (CRYPTO: BTC) exchange-traded fund (ETF) last year. Bitcoin is the world's largest cryptocurrency by market value, and ARK is extremely bullish about its future. In 2024, the firm issued a forecast that suggested the crypto could reach $1.5 million by 2030, implying a potential upside of 1,276% from its current price of $109,000 as of this writing. But last month, ARK released a new report with a fresh set of predictions and revised its bull case to $2.4 million per coin by 2030, which implies it could soar by 2,101% instead. But how realistic is that target? Had you invested $1,000 in Bitcoin 10 years ago, it would be worth $451,600 today. The same investment in the S&P 500 index would have grown to just $2,730 over the same period. It now has a market capitalization of $2.18 trillion, so if it were a company, it would be the fourth largest in the world. The digital coin has a unique set of qualities differentiating it from most other investible assets, and even most other cryptocurrencies. It's completely decentralized, so it can't be controlled by any person, company, or government. It's also scarce thanks to a fixed supply of 21 million coins -- 19.8 million of which are in circulation (the rest will be slowly mined by about 2140). Lastly, it's built on a secure system of record called the blockchain, where transactions are publicly verifiable. With that said, Bitcoin doesn't produce any revenue or earnings, nor is it very useful as a currency because of its extreme volatility, so it's still a highly speculative asset. It's more like a digital version of gold than a stock or the U.S. dollar, so further upside is contingent on the willingness of other investors to continually pay a higher price. In ARK's new April report, it highlighted six catalysts to support its $2.4 million price target. But it pointed to three of them as primary catalysts, meaning they will have a much larger influence on the price between now and 2030: Institutional investment: ETFs enable financial advisors and institutional investors to own Bitcoin in a safe and regulated manner. Previously, they needed to use digital crypto wallets, which can be susceptible to hacks and irrecoverable losses. ARK says institutional investors will have about $200 trillion in assets under management by 2030, and predicts 6.5% of that figure could flow into Bitcoin thanks to ETFs. Digital gold: As I mentioned earlier, the crypto is often thought of as a digital version of gold, except it's easier to transfer ownership, which could make it more attractive in the contemporary economy. As a result, ARK thinks 60% of the money that is currently allocated to gold could be shifted into Bitcoin by 2030 instead. An emerging-market currency: Developing countries tend to have volatile currencies, which drastically affects their citizens' purchasing power. ARK believes the digital coin could be the ultimate safe asset to help these nations hedge against inflation and other economic headwinds. According to ARK's modeling, these three catalysts will contribute 92.5% of the value in the firm's $2.4 million price target. If it proves to be accurate, investors who buy the crypto today would earn a 2,101% return by 2030. If we take ARK's $2.4 million target and multiply it by Bitcoin's total supply of 21 million coins, we get a market capitalization of $50.4 trillion. In other words, the cryptocurrency would be 15 times more valuable than the world's largest company, Microsoft, which has a market cap of $3.4 trillion today. Moreover, it would be worth more than the entire annual output of the U.S. economy, which was $29.7 trillion last year. To me, that doesn't sound realistic for an asset with no revenue, no earnings, and no proven use case. Plus, Bitcoin ETFs have only attracted about $134 billion in inflows since the SEC started approving them in January last year, and ARK's forecast relies on that figure reaching a staggering $13 trillion by 2030 (or $2.6 trillion per year for the next five years). Based on the evidence so far, that doesn't seem likely. Even if investors consider the digital token to be a viable alternative to gold, humans have used the precious metal for thousands of years, and the value of all above-ground reserves is just $22.5 trillion today. If the crypto's market cap rose to match gold's market cap, it would translate to a price per coin of $1.07 million which is still well short of ARK's target. In summary, I think ARK's $2.4 million price prediction for Bitcoin is a little ambitious. The cryptocurrency might continue to trend higher from here, but investors should probably temper their expectations because the best returns might be in the rearview mirror. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Unstoppable Cryptocurrency to Buy Before It Soars 2,101%, According to Cathie Wood's ARK Invest was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
27-05-2025
- Business
- Bloomberg
ARK, AllianzGI Vie to Tap Taiwan's Retail Boom With Active ETFs
Global asset managers including Allianz Global Investors and Cathie Wood's ARK Investment Management are racing to ride Taiwan's retail investing boom, encouraged by easing of regulations around financial-product innovation. Taiwanese regulators greenlit the first actively managed exchange-traded funds in recent months, after making legal amendments to allow them as of Dec. 31. The shift was made to help meet demand for alternative products that offer higher returns than traditional bank deposits and insurance policy-tied instruments.
Yahoo
06-04-2025
- Business
- Yahoo
Cathie Wood's ARK Buys Over $13M Worth Coinbase Shares During Market Rout
Cathie Wood's ARK Investment Management took advantage of the $5.4 trillion U.S. equities market sell-off and purchased over 83,000 shares of Coinbase (COIN), increasing exposure to the crypto exchange even as prices dipped sharply across the board. The total shares purchased were worth more than $13 million, taking Friday's closing price for Coinbase. According to ARK's daily trading disclosure for April 4, Wood's flagship ARK Innovation ETF (ARKK) bought nearly 55,000 Coinbase shares, with additional purchases coming from the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF). The timing is notable. Coinbase shares have slipped more than 12% during the market rout, while bitcoin and other cryptocurrencies showed resilience. The CoinDesk 20 (CD20) index dropped by 5.8% in the same period. The sell-off came after U.S. President Donald Trump unveiled his reciprocal tariffs against nearly every country in the world. Read more: Bitcoin Begins to Decouple From Nasdaq as U.S. Stocks Crumble Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Amazon.com, Inc. (AMZN): Among Cathie Wood's Top AI Stock Picks in 2025
We recently published a list of . In this article, we are going to take a look at where Inc. (NASDAQ:AMZN) stands against other Cathie Wood's top AI stock picks in 2025. Since founding ARK Investment Management in 2014, Cathie Wood has earned her place next to legends like Warren Buffet, Ken Fisher, and others. Wood's investment philosophy centers around identifying and investing in disruptive innovation, which she has put to great use through ARK Innovation ETF. Historically, Wood has favored tech stocks. She put substantial value into tech companies that promised to disrupt their respective industries through innovation. That hasn't changed much, and if anything, she seems to be doubling down. Since the beginning of the year, Wood has seemed to smell great opportunities in artificial intelligence (AI). In fact, the latest installment of ARK Invest's research, ARK's Big Ideas 2025, puts AI up there in terms of today's most transformative innovations. READ ALSO: Paul Singer's Latest Portfolio: Top 10 Stock Picks and 10 Best Stocks to Buy According to Seth Klarman. Wood recently commented on the research in a video posted on ARK Invest's YouTube channel, and her takeaways confirm that she is all in on AI. Right from the start, she believes AI is the story today and in the future. She said: 'AI has been the big story for the past two years, and it's still the big story. In fact, it is the biggest catalyst to all of the innovation taking place out there uh, it is the reason that the world seems to be speeding up.' In fact, Wood is convinced that the ongoing AI-driven productivity will put an end to the rolling recession. She said this in her podcast 'In the Know,' which outlined a bullish vision of technological innovation driving real GDP growth. While referencing the economic decline that she believes has been ongoing since the Fed began raising rates in 2022, she said, 'We're coming to the end of [the rolling recession]. The bad news is we do have to go through this process.' Wood and her investment firm have built a reputation for making high-conviction bets on early-stage companies (and industries). Interestingly, one of the key paragraphs in ARK's Big Ideas 2025 focuses on the risks of investing in innovation. While it points out the risks, it also gives away one of the core beliefs that makes Wood the investor she is: 'Risk is how you unlock exponential growth.' We reviewed ARK Investment Management's 13F holdings, as of Q4 2024 and selected the fund's top 12 AI stock picks. We then ranked the top 12 AI stocks in ascending order based on ARK Investment Management's stake value. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer entering an internet retail store, illustrating the convenience of online shopping. Inc. (NASDAQ:AMZN) is an internet-based business enterprise primarily providing e-commerce, cloud computing, digital streaming and artificial intelligence (AI) services. The company utilizes AI across its operations, from optimizing fulfilment centers and delivery routes to personalizing customer experiences. It is one of Cathie Wood's favorite stocks as it integrates artificial intelligence to enhance operations across its three segments: e-commerce, cloud computing, and digital advertising. Inc. (NASDAQ:AMZN) has already built 1,000 different generative AI applications to improve operations in the three businesses. In e-commerce, it leverages AI to optimize demand and optimize inventory movement. It uses AI tools to create cost-efficient advertising content while designing custom chips to provide cheaper GPUs under its cloud computing unit. The AI integration was the catalyst behind Inc. (NASDAQ:AMZN), delivering an 11% increase in revenue in 2024 to $638 billion. Its operating margin expanded by 4% as GAAP net income increased 90% to $5.53 per diluted share, affirming why it is one of Cathie Wood's favorite stocks. With sales up 19% to $28.8 billion in the fourth quarter of 2024 and operating income up 47% to $10.6 billion, AWS is Amazon's fastest-growing sector. Amazon's development of proprietary AI processors, application-specific integrated circuits, or ASICs, contributes to the segment's strong operating margins. Overall, AMZN ranks 6th on our list of Cathie Wood's top AI stock picks in 2025. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
