Selling of Cathie Wood's preferred stock: Is it advisable for you to follow suit?
Rewritten Article:
Wall Street's Legendary Investor Cathie Wood Unloads a Fave Stock in 2023 - Here's the Scoop
Cathie Wood is a Wall Street heavyweight, beloved by some, reviled by others. With her investment firm, Ark Invest, she steers a crew of actively managed ETFs, zeroing in on innovation, tech, and growth. During the tech boom, she racked up returns that made the market look like a punching bag. Her Ark Innovation Fund, the crown jewel of her company, offered a peak return exceeding 300% between 2020 and 2021.
But the markets have been less than friendly, and growth stocks have taken a beating thanks to climbing interest rates. As a result, the Ark Innovation ETF is a far cry from its 2021 peak, off by about 75%. Nevertheless, Wood remains steadfast, arguing that her strategy is long-term, and her investment horizon spans a generous five years.
Time to bid adieu to this top dog stock?
The new year has kicked off, and the Ark Innovation ETF is already climbing, up by 20%. Cathie Wood's stock picks have caught the eye of investors, especially since she recently sold a substantial chunk of her favorite stock. Leave it to Exact Sciences to command the largest position in the Ark Innovation ETF—a medical diagnostics firm that's famous for its at-home colon cancer tests. In just two days, she dumped nearly 276,000 shares of Exact Sciences.
Could this move be related to the stock's performance over the past year? With a loss of about 25%, it's not looking great. Yet, there's a twist: Since October, the stock has skyrocketed, gaining a staggering 116% thanks to a market rebound and Exact Sciences' upbeat January announcement. Expected fourth-quarter revenue could surpass expectations, and the company might finally flip a positive adjusted EBITDA quarter, if not for the full year. Might Wood be cashing in on those quick gains?
Despite the sale, Exact Sciences still occupies over 8% of the Ark Innovation ETF and retains its top slot. Investors curious about Cathie Wood's market insights might also jump on Exact Sciences' stock bandwagon. There's roughly 23% upside potential at the current price target of 74 euros.
By the by: What's the next move for Nel Asa and Plug Power, the hydrogen stock titans?
The selling of a significant amount of Exact Sciences shares by Cathie Wood raises questions about the stock's future performance, especially since it still holds over 8% of the Ark Innovation ETF and has a potential upside of 23% at the current price target of 74 euros. In the meantime, investors may keenly watch Nel and Plug Power, two notable hydrogen stock market leaders, to see their next moves.
