Cathie Wood’s Ark Invest made significant stock purchases in the wake of Monday’s tech sector selloff, aligning with her approach of “buying the dip” during market downturns.
The Magnificent 7 shed more than $750 billion in market capitalization on Monday as recession fears prompted by Donald Trump’s aggressive trade policy drove selling.
Ark Invest’s purchases focused on innovative technology firms, including Tesla Inc (NASDAQ:TSLA), Palantir Technologies Inc (NYSE:PLTR), Coinbase Global Inc (NASDAQ:COIN), Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD), Tempus AI and Robinhood Markets Inc (NASDAQ:HOOD).
The firm purchased about $17.6 million of Tesla shares spread across its Ark Innovation ETF (ARKK) and its Ark Autonomous Technology & Robotics ETF.
It bought $9.6 million worth of Robinhood for the ARKK ETF and $11.5 million of Coinbase across the Innovation ETF and the Ark Fintech Innovation ETF.
The firm also acquired about $14.2 million of AMD shares, $11.6 million of Palantir and $12.5 million of Beam Therapeutics.
Wood wrote in a post on the social media platform X on Monday that she expects the US economy to undergo a “deflationary boom” in the second half of 2025.
“In our view, the market today is discounting the last leg of a rolling recession, which will give the Trump Administration and the Powell Fed many more degrees of freedom than investors expect, setting up the US economy for a deflationary boom in the second half of this year,” Wood wrote.