Is Cathie Wood fearing more bad news from Nvidia?
Wood’s ARK Invest funds trimmed their stake in Nvidia ahead of the graphics chipmaker’s results. Nvidia has already warned on second-quarter results, so the real question is the degree of caution it employs about the rest of the year.
Nvidia shares have slumped 42% this year, though the stock has bounced 21% from its July lows. Wood’s flagship innovation fund has skidded 54% this year, though it has climbed 22% from its lows in May.
The ARK complex however pounced on Zoom Video Communications after the 17% sell-off in the virtual meeting provider following its poorly received results. The ARK Innovation fund snapped up $60 million worth of Zoom and the next-generation fund added another $11 million worth of shares.
Meanwhile, ARK’s funds continued to reduce their shares in Signify Health which has rallied on reports of a bidding war, with funds selling a combined $26 million.
Steve Goldstein – Market Watch – Additional resources and Links