Cathie Wood buys $17.2 million of tumbling tech stock

Cathie Wood, head of Ark Investment Management, targets tech companies she believes will lead the next wave of innovation.

Sometimes she buys them on the way down, hoping for a bargain. That’s what she did in the past week, adding a big tech name’s stock that has plunged 10% in a day.

Wood’s funds have experienced a volatile ride this year, swinging from sharp losses to strong gains.

In January and February, the Ark funds rallied as investors bet on the Trump administration’s potential deregulation that could benefit Wood’s tech bets.

But the momentum faded in March and April, with the funds trailing the market as top holdings slid amid growing concerns over the macroeconomy and trade policies.

Now, the Ark’s funds are showing solid performance again. As of Oct. 24, the flagship Ark Innovation ETF (ARKK) is up 55.1% year-to-date, far outpacing the S&P 500’s 15.5% gain.

Wood’s remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when the Ark Innovation ETF dropped more than 60%.

Those swings have weighed on her long-term results. As of Oct. 24, the Ark Innovation ETF has delivered a five-year annualized return of negative 1.6%, while the S&P 500 has an annualized return of 16.1% over the same period.

Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.

She thinks these companies have the potential to reshape industries and bring outsized long-term returns, but their volatility leads to major fluctuations in Ark funds’ values.

Related: Cathie Wood’s net worth: The Ark Invest CEO’s wealth & income

Over the 10 years ending in 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.

Still, Wood has been bullish on the market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks.

“During the current turbulent transition in the U.S., 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 said.

Not allinvestors share this optimism. Over the past 12 months through Oct. 23, the Ark Innovation ETF saw about $1.01 billion in net outflows, according to data from ETF research firm VettaFi.

On Oct. 22, Wood’s Ark Next Generation Internet ETF (ARKW) bought 15,756 shares of Netflix Inc. (NFLX), valued at $17.2 million as of Oct. 24’s closing price.

Shares of the streaming giant plunged approximately 10% on Oct. 22 after the company’s third-quarter results showed a sharp earnings miss tied to a $620 million tax charge in Brazil.

Related: Cathie Wood sells $8 million of popular tech stock

Netflix reported Q3 2025 revenue of $11.5 billion, up approximately 17 % year over year. However, net income was $5.87 per share, missing analyst expectations of $6.96.

Wall Street analysts were mixed on Netflix stock target following the report.

Wedbush cut its price target on Netflix to $1,400 from $1,500 and reiterated an outperform rating, according to Thefly. The firm notes that Netflix’s Q3 results and Q4 guidance were underwhelming, but it still believes Netflix is positioning for substantial growth in advertising.

JPMorgan lowered the firm’s price target on Netflix to $1,275 from $1,300 and keeps a neutral rating.

The firm believes the Brazil tax expense “creates noise, but it’s not an issue.” The bigger focus, JPMorgan says, is the lack of revenue upside in the back half of the year.

While some analysts sounded alarms over the post-earnings slump, some celebrate the buy-the-dip moment.

Argus reiterates a buy rating and $1,410 price target on Netflix shares, noting that the company’s value proposition remains strong relative to other entertainment options and that it continues to be the largest player in long-form video streaming.

Besides Netflix, Wood’s recent moves also include buying Alibaba (BABA) and Baidu (BIDU) stocks, two Chinese tech giants into which Wood has been heavily pouring money recently.

“The valuations [of Chinese tech stocks] are quite different. They’re roughly half of what they are in the United States. We’re very impressed at how quickly China is moving here,” Wood said in a Bloomberg interview in September.

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This story was originally reported by TheStreet on Oct 25, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.