Cathie Wooden, CEO of Ark Funding Administration, is understood for investing in high-growth tech corporations.
She’ll even add to positions amid sturdy positive factors, and that is what she simply did, including shares of a megacap inventory that has surged 14.8% over the previous 5 days.
In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500‘s return of 17.88% in the identical interval. Up to now this 12 months, Wooden’s flagship Ark Innovation ETF (ARKK) is up 3.05% 12 months thus far, whereas the S&P 500 surged 10.66% as of July 10, Yahoo Finance information exhibits.
Wooden gained a popularity after the Ark Innovation ETF delivered a 153% return in 2020. However her fashion additionally brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled greater than 60%.
These swings have weighed on Wooden’s long-term positive factors. As of July 10, her Ark Innovation ETF has delivered a five-year annualized return of -8.42%, whereas the S&P 500 has an annualized return of 11.63% over the identical interval, based on information from Morningstar.
Over the previous 12 months via July 8, the Ark Innovation ETF noticed roughly $1.25 billion in internet outflows.Getty Photos
Cathie Wooden flags “the deflationary influence” of tech innovation
Wooden focuses on high-tech corporations throughout synthetic intelligence, blockchain, biomedical know-how, and robotics. She thinks these companies have sturdy progress potential, although their volatility usually causes fluctuations within the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, based on a March 2025 evaluation by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer amongst mutual funds and ETFs in Arnott’s rating. The analyst hasn’t up to date her rating.
Wooden believes traders have been specializing in the incorrect indicators as they assess the outlook for inflation, rates of interest, and shares.
In a June publish on X, Wooden stated the bond market is more and more reflecting the deflationary influence of technological innovation, notably synthetic intelligence, moderately than the inflation dangers many traders nonetheless worry.
Wooden pointed to the continued flattening of the Treasury yield curve regardless of a pointy rise in oil costs over the previous 12 months. In earlier cycles, she famous, an vitality shock of that magnitude would have pushed long-term yields larger.
Wooden believes the bond market is “discounting one thing way more highly effective: the deflationary influence of technological innovation, notably synthetic intelligence, which is starting to extend productiveness throughout broad swaths of the financial system. ”
She additionally stated easing tensions with Iran and a decline in oil costs might push inflation even decrease.
“The subsequent part of this cycle may very well be characterised by accelerating progress, declining inflation, falling rates of interest, and a strengthening U.S. greenback,” Wooden stated. “That mixture would create a remarkably supportive backdrop for innovation-led equities and the applied sciences driving the following productiveness growth.”
However not all traders agree with Wooden’s optimism. Over the previous 12 months via July 8, the Ark Innovation ETF noticed roughly $1.25 billion in internet outflows, based on information from ETF analysis agency VettaFi.
Cathie Wooden buys $22.8 million of CoreWeave inventory
On July 9, Wooden’s Ark funds purchased 34,080 shares of Meta Platforms (META), based on Ark’s every day commerce info.
Wooden made the acquisition as Meta inventory climbed 14.8% over the previous week. Primarily based on the most recent closing value of $669.21, the shares at the moment are price about $22.8 million.
Meta shares have lagged a lot of the broader tech sector this 12 months, rising about 1.4% 12 months thus far in contrast with the Nasdaq Composite’s roughly 13% acquire, as traders questioned whether or not the corporate’s huge AI spending would translate into significant returns.
Nonetheless, sentiment has began to enhance. On July 10, Meta shares jumped 6% to their highest degree since April, extending positive factors that started after the corporate outlined plans to promote extra AI computing capability. A day earlier, Meta launched Muse Spark 1.1, an AI coding mannequin that may compete with choices from Anthropic and OpenAI.
The launch indicators Meta is getting extra severe about enterprise AI. BNP Paribas analyst Nick Jones stated Muse Spark 1.1 is Meta’s first paid AI mannequin, giving the corporate a chance to monetize its AI merchandise, MarketWatch reported.
The rally got here regardless of feedback from CEO Mark Zuckerberg earlier this month acknowledging that Meta’s AI reorganization has not gone as deliberate.
In keeping with a Reuters report on July 2, Zuckerberg advised workers throughout an inner city corridor that Meta’s AI brokers have developed extra slowly than anticipated.
“The trajectory of the agentic growth over no less than the final 4 months hasn’t actually accelerated in the way in which that we anticipated,” Zuckerberg stated. Nonetheless, he expects extra significant returns from the corporate’s AI investments inside the subsequent three to 6 months.
Meta is anticipated to spend as much as $145 billion on AI infrastructure this 12 months, making it one of many greatest AI spenders amongst Massive Tech.
Meta is anticipated to report second-quarter earnings later this month. Buyers will likely be watching whether or not AI investments are starting to help income progress whereas preserving spending beneath management.
The corporate delivered a powerful first quarter, reporting adjusted earnings per share of $7.31 on income of $56.31 billion, beating Wall Road estimates on each metrics.
On July 2, Wells Fargo analyst Ken Gawrelski raised his value goal on Meta to $767 from $765 whereas sustaining an chubby ranking, based on The Fly.
Forward of earnings, the analyst expects “one other quarter of sturdy advert progress and an in-line Q3 income information.” Wells Fargo additionally expects Meta to reaffirm its aggressive AI spending plans whereas offering extra particulars on alternatives to lease extra computing capability, calling it “an enhancing second half of the 12 months catalyst path.”
Meta shouldn’t be within the prime 10 holdings of Wooden’s Ark Innovation ETF.
Prime 10 holdings of the Ark Innovation ETF as of July 10, 2026:
Aside from shopping for Meta shares, Wooden’s newest trades included including shares of Area Exploration Applied sciences (SPCX), Coinbase World (COIN), X-Power (XE), and Recursion Prescribed drugs (RXRX). She additionally trimmed positions in Superior Micro Units (AMD), Deere (DE), 10x Genomics (TXG), Twist Bioscience (TWST), and Strata Vital Medical (SRTA).
