Cathie Wood Doubles Down on Tesla and CrowdStrike Amid Market Volatility

In a strategic move reflecting her unwavering belief in innovation, Ark Invest's Cathie Wood has increased her holdings in Tesla and CrowdStrike following significant stock pullbacks. On Wednesday, Wood acquired 33,143 shares of Tesla for the ARK Next Generation Internet ETF (ARKW), despite the electric vehicle manufacturer experiencing a 12% drop after disappointing second-quarter earnings. Wood, a long-time advocate for Tesla, has set an ambitious price target of $2,600 per share by 2029, projecting a staggering valuation of over $8 trillion for the company. Wood's confidence in Tesla is bolstered by the potential of its future robotaxi business, which she believes could account for more than half of the company's expected value by 2026. In addition to Tesla, Ark Invest has also been active in the cybersecurity sector, purchasing 38,595 shares of CrowdStrike on Friday and another 20,219 shares on Monday. This comes after the company faced a significant setback due to a faulty update to its Falcon software, which led to widespread technical failures and disruptions. Despite these investments, Wood has faced challenges this year, with her flagship Ark Innovation ETF (ARKK) declining over 14% and experiencing more than $2 billion in outflows. In a recent letter to clients, she acknowledged the difficulties while reaffirming her commitment to disruptive innovation, emphasizing that her conviction remains strong as macroeconomic conditions improve. Wood's approach highlights her belief in the long-term potential of technology stocks, even amidst short-term volatility and investor skepticism.