One of Cathie Wood’s signature moves is to buy stocks when they’re down, looking for names that she thinks will recover over time.
The CEO of Ark Investment Management followed that playbook again last week, buying a technology stock that had fallen 16.3% over the past five trading days.
Wood’s investment strategy has worked well this year, with her funds outperforming major market indexes. As of November 7, Major Ark Innovation ETF (ARKK) is up nearly 40% year to date, far outpacing the S&P 500’s gain of 14.2%.
Wood gained a solid reputation after the Ark Innovation ETF returned 153% in 2020. The same approach that delivers big gains in a bull market can also lead to huge losses, as happened in 2022, when the fund fell more than 60%.
These fluctuations affected its long-term results. As of November 6, the Ark Innovation ETF had a five-year annualized return of -4.07%, while the Ark Innovation ETF had a five-year annualized return of -4.07%. Standard & Poor’s 500 It has an annual return of 15.57% over the same period, according to data from Morningstar.
Wood’s investing strategy is straightforward: Her Ark ETFs typically target emerging high-tech companies in areas such as artificial intelligence, blockchain, biomedical technology, and robotics.
She believes that these companies have the potential to reshape industries and deliver outsized returns over the long term, but their volatility leads to significant fluctuations in the values of the Arc Funds.
Related: Cathie Wood Net Worth: Ark Invest CEO Wealth and Income
Over the 10 years ending in 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by a Morningstar analyst. Amy Arnott. This made it the third largest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.
However, Wood was bullish on the market. In a letter to investors published in late April, she rejected expectations of a recession extending into 2026 and struck an optimistic tone for technology stocks.
“We believe that consumers and businesses are likely to accelerate the shift to technology-enabled innovation platforms, including artificial intelligence, robotics, energy storage, blockchain technology, and multi-dimensional blockchain,” she said.
Not all investors share this optimism. In the 12 months through Nov. 6, the Ark Innovation ETF saw net outflows of about $1.38 billion, according to the ETF research firm. Vitafy.
On November 5, Wood’s Ark funds purchased 521,867 shares of Pinterest (PINS), worth about $13.8 million, following a decline in the social platform’s shares following disappointing earnings and forecasts.
Wood has not been active in trading Pinterest stock. Its previous move on the stock was in August, when it bought 643,416 shares.
Related: Cathie Wood Sells $21.4 Million of Top AI Stocks
On November 4, Pinterest shares fell 21.76%, erasing the stock’s gains for the year after the company reported third-quarter results that fell short of earnings expectations and offered a weak outlook.
Earnings per share were 38 cents on an adjusted basis, below analysts’ expectations of 42 cents. Revenues were $1.05 billion, matching expectations.
For the fourth quarter, the company expects revenue between $1.31 billion to $1.34 billion. The midpoint of this range came in below Wall Street estimates.
Pinterest CFO Julia Donnelly said during the earnings call that the company saw “pockets of moderate ad spending” in the U.S. and Canada during the quarter. She linked the slowdown to “large US retailers” facing tariff-related pressures on their margins.
“We see these broader trends and market uncertainty continuing with the addition of new tariffs in Q4 impacting the home furnishing category,” Donnelly said.
However, a report by Meta, the social media giant, showed strong digital ad sales. Its third-quarter revenue, about 98% of which comes from online advertising, rose 26% year over year to $51.24 billion. This was the company’s fastest revenue growth since the first quarter of 2024.
Citi cut its price target on Pinterest to $38 from $50, but maintained a buy rating on the stock.
“While these challenges may continue into 2026, we are encouraged by Performance+’s 24% increase in conversions, ROAS offerings representing 22% of low-funnel retail revenue, and the potential for newer search and shopping ad products. This is as engagement continues to improve with Generation Z reaching 50%+ of total users,” the analyst wrote in a research report.
“While we acknowledge the challenges faced by advertisers, with shares down nearly 20% following results, we will benefit from the disruption,” the analyst added.
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Tesla company: 13.15%
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Roku Company: 5.84%
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Coinbase Global Inc Class A: 5.50%
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CRISPR Therapeutics AG: 5.10%
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Shopify Inc Class A: 4.66%
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Tempus Artificial Intelligence Company: 4.57%
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Advanced Micro Devices: 4.33%
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Robinhood Markets Inc Class A: 4.31%
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Palantir Technologies Inc Class A: 4.07%
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Roblox Company Class A: 3.93%
Pinterest is not among the top 10 holdings in the Ark Innovation ETF.
Wood has also cut several names recently. Ark Funds shorted 56,095 shares of Robinhood Markets (HOOD) for about $8 million. The Ark Next Generation Fintech ETF sold 11,989 shares of Reddit (RDDT) for approximately $2.4 million, and the Ark Fintech Innovation ETF sold 60,808 shares of SoFi Technologies (SOFI) for approximately $1.8 million.
Related: Veteran analyst who predicted AMD surge sends new message
This story was originally reported by The Street On November 8, 2025, he first appeared in Investment to divide. Add TheStreet as Favorite source by clicking here.
The post Cathie Wood buys $13.8 million of tumbling tech stock first appeared on Investorempires.com.
