Ark Invest's Cathie Wood Just Sold AMD Stock and Bought SpaceX. Why I'd Be Doing the Opposite.
AMD stock looks like the much better buy than SpaceX.
Overview
Ark Invest's Cathie Wood has made a name for herself with her aggressive style of investing. She likes innovative companies that have the potential to disrupt industries. Perhaps not surprisingly then, her flagship Ark Innovation ETF (NYSEMKT: ARKK) has a history of wild swings.
For example, the fund produced a 67.6% gain in 2023, but that was after a 23.4% loss in 2021 and a 67% drawback in 2023. This year the fund has trailed the market, having a slight negative return.
Details
Wood has also long been a fan of Elon Musk. Ark Innovation counts Tesla as its top holding, and recently she has been selling down the exchange-traded fund's position in Advanced Micro Devices (NASDAQ: AMD) and buying stock in Musk's other company, SpaceX (NASDAQ: SPCX). However, that is the exact opposite of what I'd be doing right now. Let's take a closer look at the two stocks and why I'd be selling SpaceX and buying AMD.
Source
Originally published at www.fool.com.