Ark Invest's Cathie Wood snapped up beaten-down shares of Tesla and CrowdStrike after their recent pullbacks as the innovation investor doubled down on her favorite tech stocks. The widely followed investor added 33,143 shares of Tesla on Wednesday for ARK Next Generation Internet ETF (ARKW) . The electric vehicle company closed down 12% in the previous session after the firm reported second-quarter earnings that missed expectations.
Last month, Wood, a longtime Tesla bull, updated her price target for the company, seeing Elon Musk's firm trading at $2,600 by 2029. That would value Tesla at more than $8 trillion; by comparison, Apple's valuation is at about $3.4 trillion.
Wood has been bullish on Tesla's potential robotaxi business, which could contribute more than 50% of the company's expected value in 2026. A few days prior, Wood also bought up shares of CrowdStrike amid a global outage that took millions of Microsoft Windows devices offline last week. Ark Invest purchased 38,595 shares of the cybersecurity software company on Friday and another 20,219 shares on Monday.
The stock tumbled double digits on both days as the company issued a defective update to its Falcon vulnerability-protection software that caused PCs, computer servers in data centers and display screens to crash, resulting in grounded flights and canceled medical appointments. Wood has been grappling with a tough year with underperformance as well as disappointed investors yanking their money. Her flagship Ark Innovation ETF (ARKK ) has fallen more than 14% this year and experienced more than $2 billion in outflows, according to FactSet.
The investor recently acknowledged the poor performance in a letter to clients , while reiterating her conviction on innovation stocks as inflation eases and interest rates fall. "As an investor in our funds myself, I understand that volatility can be frustrating and unsettling," she said in the letter. "Acknowledging fully that the macro environment and some stock picks have challenged our recent performance, I would like to communicate why our conviction in and commitment to investing in disruptive innovation have not wavered.
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