Cathie Wooden, head of Ark Funding Administration, likes to lock in beneficial properties when her tech darlings rally.
That is precisely what she’s doing with Snowflake, trimming her place after the cloud software program inventory surged practically 10% over the previous 5 buying and selling days forward of earnings.
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. However up to now this yr, Wooden’s flagship Ark Innovation ETF (ARKK) is down 8.51% as of July 31, whereas the S&P 500 surged 9.41%, Yahoo Finance knowledge reveals.
Wooden gained a popularity after the Ark Innovation ETF delivered a 153% return in 2020. However her type 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 beneficial properties. As of July 31, her Ark Innovation ETF has delivered a five-year annualized return of -9.75%, whereas the S&P 500 has an annualized return of 11.25% over the identical interval, in response to knowledge from Morningstar.
Over the previous 12 months by way of July 30, the Ark Innovation ETF noticed roughly $1.49 billion in web outflows.Getty Photographs
Cathie Wooden flags “the deflationary influence” of tech innovation
Wooden often focuses on high-tech corporations throughout synthetic intelligence, blockchain, biomedical expertise, and robotics. She believes these companies have robust development potential, although their volatility typically causes fluctuations within the Ark’s funds.
Over the last decade ended 2025, the Ark Innovation ETF worn out practically $5 billion in investor wealth, in response to an evaluation by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer amongst mutual funds and ETFs within the 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 submit on X, Wooden mentioned the bond market is more and more reflecting the deflationary influence of technological innovation, significantly synthetic intelligence, relatively 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 yr. In earlier cycles, she famous, an vitality shock of that magnitude would have pushed long-term yields greater.
Wooden believes the bond market is “discounting one thing far more highly effective: the deflationary influence of technological innovation, significantly synthetic intelligence, which is starting to extend productiveness throughout broad swaths of the economic system. ”
She additionally mentioned easing tensions with Iran and a decline in oil costs might push inflation even decrease.
“The following part of this cycle may very well be characterised by accelerating development, declining inflation, falling rates of interest, and a strengthening U.S. greenback,” Wooden mentioned. “That mixture would create a remarkably supportive backdrop for innovation-led equities and the applied sciences driving the subsequent productiveness growth.”
Not all traders agree with Wooden’s optimism. Over the previous 12 months by way of July 30, the Ark Innovation ETF noticed roughly $1.49 billion in web outflows, in response to knowledge from ETF analysis agency VettaFi.
Cathie Wooden sells $5.5 million of Snowflake inventory
On July 31, Wooden’s Ark Innovation ETF bought 18,855 shares of Snowflake Inc (SNOW), in response to its each day buying and selling info. Primarily based on the most recent closing worth of $293.28, these shares had been value about $5.5 million.
Snowflake is a software program firm that helps companies deal with massive quantities of knowledge. Earlier this yr, traders apprehensive that AI might disrupt the software-as-a-service (SaaS) enterprise mannequin, which prices clients based mostly on the variety of customers.
However that is not the story for Snowflake.
Shares of Snowflake have surged 9.41% over the previous 5 buying and selling days, largely attributable to a bullish name from Wells Fargo. On July 29, the financial institution raised its worth goal on the inventory to $500 from $320 whereas sustaining its Chubby ranking, saying “the sport has modified,” in response to The Fly.
That’s the highest goal on Wall Avenue, implying roughly 70% upside from the July 31 shut of $293.28.
Wells Fargo believes AI brokers are accelerating buyer spending on Snowflake, whereas traders are underestimating the corporate’s AI-driven development potential.
The analyst sees Snowflake as a near-term AI beneficiary “with out capex necessities or mannequin dependence.” Which means the corporate can revenue with out having to spend closely on infrastructure.
12 months-to-date, Snowflake inventory is up 33.7%, together with a 36.48% bounce on Might 28 after the corporate delivered stronger-than-expected earnings and introduced plans to spend $6 billion on Amazon Net Providers infrastructure over the subsequent 5 years. That was Snowflake’s greatest single-day achieve on document.
For its fiscal first quarter, Snowflake reported adjusted earnings of 39 cents per share and income of $1.39 billion, which was up 33% from a yr earlier. Analysts had been anticipating earnings of 32 cents per share and income of $1.32 billion, CNBC reported.
Snowflake additionally issued upbeat steerage. It forecast fiscal second-quarter product income of $1.415 billion to $1.420 billion and an adjusted working margin of 12.5%. Wall Avenue was in search of product income of $1.37 billion and an adjusted working margin of 11.9%.
Snowflake is estimated to report its fiscal Q2 earnings on August 26.
“AI continues to be a robust tailwind for Snowflake, and Q1 marks a transparent inflection level in that journey. With Cortex Code and Snowflake Intelligence, we’re extending from the trusted basis for enterprise knowledge and context to grow to be the management airplane for the Agentic Enterprise,” Snowflake’s CEO Sridhar Ramaswamy mentioned in a press release.
“We’re seeing robust momentum from each AI-driven acceleration of our core platform and rising adoption of our first-party AI merchandise, positioning Snowflake to guide on this new period.”
Wooden considerably elevated her Snowflake place on June 18, buying 223,690 shares valued at roughly $52 million on the time. Extra lately, her funds started trimming the stake, promoting one other 14,684 shares on July 20. This was doubtless a profit-taking transfer earlier than earnings.
Snowflake will not be in Ark Innovation ETF’s high 10 holdings.
Prime 10 Holdings within the Ark Innovation ETF by Portfolio Weight as of July 31, 2026:
Tesla (TSLA) – 9.42%
SpaceX (SPCX) – 4.92%
Tempus AI (TEM) – 4.81%
CRISPR Therapeutics (CRSP) – 4.66%
Coinbase (COIN) – 4.54%
Shopify (SHOP) – 4.54%
Superior Micro Units (AMD) – 3.96%
Circle Web Group (CRCL) – 3.82%
Robinhood Markets (HOOD) – 3.54%
10x Genomics (TXG) – 3.43%
Aside from promoting Snowflake shares, Wooden’s newest trades included shopping for CoreWeave (CRWV), Circle Web Group (CRCL), Pony AI (PONY), and a small quantity of Kodiak AI (KDK).
She additionally trimmed positions in Shopify (SHOP), 10x Genomics (TXG), Brera Holdings (SLMT), Figma (FIG), Strata Crucial Medical (SRTA), and Iridium Communications (IRDM).
