Cathie Wood sells $5.5 million of surging tech stock

Cathie Wood, caput of Ark Investment Management, likes to fastener successful gains erstwhile her tech darlings rally. 

That's precisely what she's doing with Snowflake, trimming her presumption aft the unreality bundle banal surged astir 10% implicit the past 5 trading days up of earnings.

In 2025, the flagship Ark Innovation ETF gained 35.49%, acold outpacing the S&P 500's instrumentality of 17.88% successful the aforesaid period. But truthful acold this year, Wood's flagship Ark Innovation ETF (ARKK) is down 8.51% arsenic of July 31, portion the S&P 500 surged 9.41%, Yahoo Finance information shows.

Wood gained a estimation aft the Ark Innovation ETF delivered a 153% instrumentality successful 2020. But her benignant besides brings achy losses successful bearish markets, arsenic seen successful 2022, erstwhile the Ark Innovation ETF tumbled much than 60%.

Those swings person weighed connected Wood's semipermanent gains. As of July 31, her Ark Innovation ETF has delivered a five-year annualized instrumentality of -9.75%, portion the S&P 500 has an annualized instrumentality of 11.25% implicit the aforesaid period, according to information from Morningstar.

Cathie Wood flags "the deflationary impact" of tech innovation

Wood usually focuses connected high-tech companies crossed artificial intelligence, blockchain, biomedical technology, and robotics. She believes these businesses person beardown maturation potential, though their volatility often causes fluctuations successful the Ark's funds.

Over the decennary ended 2025, the Ark Innovation ETF wiped retired astir $5 cardinal successful capitalist wealth, according to an investigation by Morningstar's expert Amy Arnott. That made it the fourth-biggest wealthiness destroyer among communal funds and ETFs successful the ranking. 

Wood believes investors person been focusing connected the incorrect signals arsenic they measure the outlook for inflation, involvement rates, and stocks.

In a June station connected X, Wood said the enslaved marketplace is progressively reflecting the deflationary interaction of technological innovation, peculiarly artificial intelligence, alternatively than the ostentation risks galore investors inactive fear.

Related: Cathie Wood buys $50.1 cardinal of tumbling megacap stock

Wood pointed to the continued flattening of the Treasury output curve contempt a crisp emergence successful lipid prices implicit the past year. In erstwhile cycles, she noted, an vigor daze of that magnitude would person pushed semipermanent yields higher. 

Wood believes the enslaved marketplace is "discounting thing overmuch much powerful: the deflationary interaction of technological innovation, peculiarly artificial intelligence, which is opening to summation productivity crossed wide swaths of the economy.
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She besides said easing tensions with Iran and a diminution successful lipid prices could propulsion ostentation adjacent lower.