Cathie Wood buys falling tech stocks: Amazon, Meta, Tesla

Several ETFs at Wood’s firm, ARK Invest, bought a variety of tech stocks after they fell alongside a broader market drop. ARK Invest, which has $6.7 billion in assets under management, is an influential firm whose funds have fallen on hard times. Reports earlier this year showed investors pulled a total of $2.2 billion from the funds over their poor performance. 

Wood is hoping to turn things around. This week, at least two ARK Invest ETFs bought shares in tech companies whose shares tumbled over the past month. The actively managed ARK Innovation ETF bought roughly $45 million worth of shares in companies like Amazon, Advanced Micro Devices, and Coinbase, based on the opening price on the day they were purchased. The firm’s ARK Next Generation Internet Fund bought $9.5 million of Meta, Tesla, and Robinhood shares, based on the same calculations. Both funds purchased other stocks as well.  

All of those companies got caught up in the drastic rout that hit the entirety of the market. However, whether Woods is buying stocks at a bargain price or right as the market begins to crater remains to be seen. 

“She could be right, she could be wrong,” says George Kailas, CEO of Prospero.ai, a fintech investment platform. “She’s definitely been both in the last couple years.”

ARK invest declined to comment and instead directed Fortune to a video where Wood discussed the recent market moves.

Kailas is referring to ARK Invest’s bet on Tesla, which netted the firm a fortune when its stock rallied in 2021. However, since then ARK Invest’s performance has been much more disappointing. The Next Generation Internet fund, which invests in cloud-related internet companies, is down 2% so far this year. Meanwhile the Innovation ETF, ARK Invest’s flagship fund, is down almost 20% for the year. Neither ETF has reached the heights they soared to in 2021. 

The slump in tech stocks coincided with, or some might say led to, a global selloff across equities. On Friday, stock market indexes from Japan to the U.S. all had sharp single-day declines. Since then, both Japan’s Nikkei and the S&P 500 rebounded slightly, but not enough to assuage the fears of some investors that it might just be a short recovery of falling stock prices. “I feel it is a dead cat bounce,” said Gene Goldman, chief investment officer of financial services company Cetera. 

Goldman predicts a “peak to trough fall in the S&P 500 of 10% or more.” 

Kailas agreed, though more tentatively, saying if he had to pick a direction for the stock market it would be “a little more bearish.” 

There are a group of long-term growth investors that, like Wood, view the current state of the market as an opportunity. Many tech companies remain in good shape, even if the market is tumultuous, making their cheapening stocks a bargain, UBS said in an analyst note published Thursday.

“Tech fundamentals remain solid, in our view, while valuations…