Key Factors
- Cathie Wooden purchased a tech inventory after it dropped attributable to weak earnings.
- Ark Innovation ETF is up 40% in 2025 however has damaging five-year annualized returns.
- The S&P 500 is up 14.2% this yr.
Considered one of Cathie Wooden’s signature strikes is shopping for shares after they pull again, in search of names she believes will get better over time.
The CEO of Ark Funding Administration adopted that playbook once more up to now week, choosing up a tech inventory that dropped 16.3% during the last 5 buying and selling days.
Wooden’s funding technique has labored properly this yr, along with her funds outpacing the main market indexes. As of Nov. 7, the flagship Ark Innovation ETF (ARKK) is up about 40% year-to-date, far outpacing the S&P 500’s acquire of 14.2%.
Wooden gained a robust status after the Ark Innovation ETF delivered a 153% return in 2020. The identical type that produces large wins in a rising market can even carry heavy losses, because it did in 2022, when the fund fell greater than 60%.
These swings have weighed on her long-term outcomes. As of Nov. 6, the Ark Innovation ETF has delivered a five-year annualized return of -4.07%, whereas the S&P 500 has an annualized return of 15.57% over the identical interval, in accordance with information from Morningstar.
Supply: Fallon/AFP through Getty Photographs
Cathie Wooden’s funding technique defined
Wooden’s funding technique is simple: Her Ark ETFs sometimes goal rising high-tech corporations in fields comparable to synthetic intelligence, blockchain, biomedical know-how, and robotics.
She believes these corporations have the potential to reshape industries and ship outsized long-term returns, however their volatility results in large fluctuations within the values of Ark funds.
Over the ten years ending in 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, in accordance with an evaluation by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer amongst mutual funds and ETFs in Arnott’s rating.
Nonetheless, Wooden has been bullish available on the market. In a letter to traders revealed in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech shares.
“We think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms, including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing,” she mentioned.
Not all traders share this optimism. Within the 12 months by means of Nov. 6, the Ark Innovation ETF noticed about $1.38 billion in web outflows, in accordance with ETF analysis agency VettaFi.
Cathie Wooden buys $13.8 million of Pinterest inventory
On Nov. 5, Wooden’s Ark funds bought 521,867 shares of Pinterest (PINS), valued at roughly $13.8 million, following the social platform’s inventory plunge after disappointing earnings and outlook.
Wooden hasn’t been lively in buying and selling Pinterest shares. Her earlier transfer on the inventory was in August, when she purchased 643,416 shares.
On Nov. 4, Pinterest shares sank 21.76%, wiping out the inventory’s features for the yr after the corporate posted third-quarter outcomes that fell wanting earnings expectations and provided a tender outlook.
Earnings per share had been 38 cents on an adjusted foundation, lacking the 42 cents analysts anticipated. Income got here in at $1.05 billion, matching forecasts.
For the fourth quarter, the corporate expects income of $1.31 billion to $1.34 billion. The midpoint of that vary got here in under Wall Road’s estimate.
Pinterest’s finance chief, Julia Donnelly, mentioned through the earnings name that the corporate noticed “pockets of moderating ad spend” in the USA and Canada through the quarter. She linked the slowdown to “larger United States retailers” going through tariff-related strain on their margins.
“We see these broader trends and market uncertainty continuing with the addition of a new tariff in Q4 impacting the home furnishing category,” Donnelly mentioned.
Social media big Meta’s report, nonetheless, confirmed sturdy digital promoting gross sales. Its third-quarter income, with about 98% coming from on-line adverts, rose 26% yr over yr to $51.24 billion. It was the corporate’s quickest income progress because the first quarter of 2024.
Citi has lowered its value goal on Pinterest to $38 from $50, however retains a purchase ranking on the shares.
“While these challenges could persist into ‘26, we are encouraged with Performance+’s 24% conversion lift, ROAS Bidding accounting for 22% of lower-funnel retail revenue, and the potential around newer Search & Shopping ad products. This as engagement continues to improve with Gen Z 50%+ of total users,” the analyst wrote in a analysis report.
“While we acknowledge advertiser challenges, with shares down about 20% following results, we would take advantage of the dislocation,” the analyst added.
Prime 10 holdings of the Ark Innovation ETF as of Nov. 7, 2025:
- Tesla Inc.: 13.15%
- Roku Inc.: 5.84%
- Coinbase World Inc Class A: 5.50%
- Crispr Therapeutics AG: 5.10%
- Shopify Inc Class A: 4.66%
- Tempus AI Inc.: 4.57%
- Superior Micro Units: 4.33%
- Robinhood Markets Inc Class A: 4.31%
- Palantir Applied sciences Inc Class A: 4.07%
- Roblox Corp Class A: 3.93%
Pinterest isn’t among the many prime 10 holdings of the Ark Innovation ETF.
Wooden additionally trimmed a number of names lately. The Ark funds decreased 56,095 shares of Robinhood Markets (HOOD) for about $8 million. The Ark Subsequent Era Fintech ETF offered 11,989 shares of Reddit (RDDT) for about $2.4 million, and the Ark Fintech Innovation ETF offered 60,808 shares of SoFi Applied sciences (SOFI) for about $1.8 million.
In regards to the authors
Silin Chen is a monetary markets reporter at TheStreet, overlaying shares, investing developments, and market developments. She holds a Grasp’s Diploma in Enterprise and Financial Reporting from NYU and beforehand interned on the Monetary Occasions, reporting on breaking information and retail markets. Silin leverages her reporting experience to assist readers make knowledgeable funding selections. She additionally has two years of expertise overlaying mutual funds and investing in Shanghai, China. Silin is obsessed with serving to readers perceive the market and loves enjoying along with her cat. You possibly can attain out to silin.chen@thearenagroup.web along with your suggestions and strategies.
Celine is an skilled author and editor overlaying information, options, tutorial/analysis, and authorized matters for over 20 years. At TheStreet.com, Celine is a senior editor with expertise throughout retail, shares, investing, private finance, know-how, the economic system, and journey.
