Cathie Wood reaffirmed that innovation stocks are not in a bubble: 'Absolutely, we stand by that'
Cathie Wood reassured investors that innovation stocks are not in a bubble. Standing by her previous statement, "we are not in a bubble." In a CNBC interview, the asset manager reaffirmed her previous words, stating: "Absolutely. We stand by that."
Wood, whose exchange traded funds have been under heavy fire, marked yesterday's one-year anniversary where Wood's flagship ARK Innovation ETF (NYSEARCA:ARKK) topped out at $159.70 to a now sub $70 level to $68.64 a share or -56.3%.
During the long-winded interview, Wood added that she believes ARKK and innovation-related names are very attractive right now, adding, "we do believe that innovation is in bargain-basement territory."
When asked if she believed that some of the names like Teledoc Health (NYSE:TDOC), Robinhood Markets (NASDAQ:HOOD), Roblox Corporation (NYSE:RBLX), Pacific Biosciences of California (NASDAQ:PACB) and others which are off their highs by 76.6%, 85.2%, 60.9%, and 78.6% can possibly come back to recapture their highs, Wood emphatically said: "Absolutely and beyond."
Moreover, much has been criticized about how ARKK analysts are technology-specific specialists and not traditionally trained. Still, Wood made sure to provide backing, stating: "Our research is so good, I think it is the best in the financial world when it comes to disruptive innovation." Taking it a step further, when asked if any analysts would be let go due in part to the significant downturn, Wood added, "No, not at all."
In fairness to Wood, even with all the naysayers and critics surrounding her funds, she stands by her strategy without waiver, telling her investors that ARKK believes in a five-year timeline and Wood herself is personally tied to ARK's funds. Stating: "Well, the first thing I would want to say is more than half of my personal financial net worth is in our funds."
Year-to-date price action on all six of ARK’s actively managed ETFs: (ARKK) -27.3%, (NYSEARCA:ARKW) -26.9%, (NYSEARCA:ARKF) -26.2%, (BATS:ARKG) -23.9%, (BATS:ARKQ) -16%, and (BATS:ARKX) -12.6%.
While Wood believes innovation is not in a bubble, history might disagree.