Cathie Wood buys the dip on Tesla, Zoom, Roku stocks

Yahoo Finance’s Alexandra Semenova joins the Live show to discuss Cathie Wood’s ARK innovation fund buying the dip on Tesla, Zoom, and Roku stocks.

Video transcript

JARED BLIKRE: Yes, well, we're keeping our eye on ARK Innovation components. I have Yahoo Finance's Alexandra Semenova here. And, Alex, so it's been an interesting week. Tesla had been the number-one holding in the ARK Innovation Fund. That changed, and Cathie Wood has been doing some interesting trading lately.

ALEXANDRA SEMENOVA: Yeah, Jared, renewed pressure in technology stocks this week has deepened losses in some badly hit names, but that wasn't enough to stop ARK Invest CEO Cathie Wood from doing some major dip buying, snapping up shares of companies including Roku, Zoom, and Tesla.

Let's take a look at Tesla here. Now up until this week, Wood had been steadily trimming her stake in Tesla for four consecutive quarters. The company even lost its spot as its top holding.

JARED BLIKRE: Yeah, just like we were talking about. And what happened next? Because she's been shifting some things around here.

ALEXANDRA SEMENOVA: Yeah, in recent days she snapped up an estimated $28 million in Tesla shares as the stock has been on its way down. Now, Tesla is up today, but year to date--

JARED BLIKRE: That's where we are right now.

ALEXANDRA SEMENOVA: --as you can see over here--

JARED BLIKRE: It's down 35%. It's been rough. It's been a little bit rough.

ALEXANDRA SEMENOVA: Yeah, it's been rough. And as you and I were discussing yesterday during intraday trading, it hit roughly half of the share price that it was at its all-time high.

JARED BLIKRE: Yeah, and I think that's important to point out. I'm going to go to a longer-term chart here. Here's a one year. Now, this is kind of ugly in here, but here's a peak. I think it was $1420, 43-- $1,243. Excuse me. And so the halfway point is down here, and you can see that's not far from giving back almost all of those gains.

ALEXANDRA SEMENOVA: Yeah, definitely seeing some extended downturn and underperforming other growth names as Elon Musk pursues-- Elon Musk pursues his deal to purchase Twitter.

JARED BLIKRE: Yeah, all right. And let me just ask you this because there's been some other trading in Zoom and Roku as well. You want to show one of those before we go?

ALEXANDRA SEMENOVA: Yeah, Zoom is also an interesting one. Now Zoom is now the largest holding in ARK Innovation. Interestingly, the company was one of the biggest detractors last quarter for ARK. Still Cathie Wood buying up shares of Zoom, now leading ARK Innovation.

JARED BLIKRE: All right, we've got time for one more if we do it quickly. How about Roku? That's over--

ALEXANDRA SEMENOVA: The last one, Roku another detractor last quarter for Wood, down roughly 63% year to date.

Now, Wood definitely making some interesting moves. She's been known to concentrate on existing shares in her portfolio and really buy them up as they see downturn, expecting a rebound. But still eyebrow-raising moves by Wood buying up these really beaten-down names.

JARED BLIKRE: Indeed, and I know you're writing about it. Everybody check it out on YahooFinance.com.