Cathie Wood shocked the investment and stock industry last week when she invested heavily in AI stock. Not only did she buy the dwindling stock, but she made purchases for five days in a row.
This is something that the investing guru has never done before, sparking curiosity from experts in the industry.
Cathie Wood Buying AI Stock
Cathie Wood, the famous multimillionaire investor, surprised the stock market, fellow investors, and analysts last week when she bought AI stock multiple times. As she is not known for buying low, undervalued stocks like Berkshire Hathaway’s CEO Warren Buffett, it surprised many people to see her do just that.
Moreover, she bought the AI stock on all five of its trading days this past week and six of Ark Invest’s eight ETFs.
Amazon’s Poor-Performing Stock
The AI stock that Cathie Wood bought was Amazon stock. This happened after the e-commerce company saw its report for the second quarter show declining stock and poor returns. According to the report, the company’s revenue for the second quarter and its sales were below expectations, causing its stock to fall by about 9%.
This is the lowest the company stock has been in about ten years, and Wood saw the opportunity to buy some at a low price and took advantage of it.
Who Is Cathie Wood?
Catherine Duddy Wood, popularly called Cathie Wood, is a famous American investor. She is also the founder, CIO, and CEO of Ark Invest, a popular investment management firm. She was born on November 26th, 1955, and graduated from the University of Southern California in 1981 at the age of 26.
She is known to invest heavily in self-driving cars like Tesla and genomics in the healthcare sector.
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Why Is Cathie Wood Buying AI Stock Surprising?
It was very surprising when Cathie Wood decided to buy AI stock repeatedly over a span of a few days for several reasons. However, the biggest one is that she branched out of her usual niche.
Wood is not usually a front-runner for AI stock and is more famous for investing in companies like Tesla and Teladoc Health. Since Amazon is an e-commerce and cloud storage company, it was unusual that its stocks caught her attention.
Is This the First Time Cathie Wood Has Invested in Amazon Stock?
While it is uncommon for Wood to invest in AI stock like Amazon, it is not the first time the investor has done this. She had bought Amazon stock before and held it for years in many exchange-traded funds (ETFs).
When the company’s stock plunged, she couldn’t resist the opportunity to buy some of Amazon’s stock for the future. The stock was at its lowest point in a decade, but as experts predicted a surge soon, this was a good investment.
Should You Invest in Amazon Stock?
Cathie Wood just bought and invested in Amazon stock, but does that mean you should, too? For those wondering, experts do not advise investors to buy Amazon stock right now. The Motley Fool Stock Advisor analyst team just ranked the best 10 stocks that those looking to purchase someone should invest in.
For good reason, Amazon is not on this list. The stock is relatively unstable right now, and small investors may be at a huge loss.
Cathie Wood’s Investment Company
ARK Investment Management LLC is Cathie Wood’s investment company. It is also popularly called “ARK Invest” or simply “ARK.” The company is an American investment firm that was founded in 2014 by Cathie Wood in St. Petersburg, Florida.
ARK managed many exchange-traded funds (ETFs) worth $6.71 billion in 2023. Due to its high performance, the company was valued at $50 billion at its peak in February 2021.
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What Is Cathie Wood’s Net Worth?
Cathie Wood is a multimillionaire thanks to ARK, her brilliant investment firm. Her exact net worth is not confirmed, but several estimates of her wealth have been made in the media. Wood was worth $400 million at her peak in 2021 before reducing to $140 million in June 2022.
However, she has turned this around and is currently worth about $250 million to $300 million as of June 2024.
What Is the Most Promising AI Stock?
AI stocks can be very tricky, so many people are usually quite skeptical about buying some. However, one can make appropriate findings to know which AI stocks are best and which ones to avoid completely.
If you are looking to buy some AI stock, Apen Aerogels, Inc. (ASPN) is a good choice. Maravai LifeSciences Holdings, Inc. (MRVI)and Lotus Technology Inc. (LOT) are also great firms to consider.
Who Has Invested the Most in AI?
According to reports, most tech giants invest billions of dollars in AI companies. However, OpenAI, the company that runs chatGPT, has the highest AI investment, with a staggering $14 billion.
When looking at countries with the most investments in AI, the United States of America has the most, at $328,548 billion, leading all other countries. What’s more, 83% of companies in the U.S. use AI in their businesses.
What Is Artificial Intelligence in Stock Trading?
AI (Artificial Intelligence) stocks are shares of companies in the artificial intelligence sector. Just as there are many types of stocks in one field, there are also several varieties of AI stocks.
However, AI stock is still relatively new, as many companies are now moving to digitalizing their products and workforce. AI also helps in data mining and stock trading, making complex analysis easier to carry out and track.
Is AI Stock a Good Long-Term Investment?
AI stock is a good long-term investment for those who can afford it. Many AI companies, like Microsoft, usually have excellent growth and substantial business revenue.
Companies that produce AI software or hardware and those that incorporate AI into their business are also good investment options for those interested in AI stock. Therefore, you don’t always have to buy the dip to make huge gains.
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