Following Cathie Wood: Continued buying of AI pharmaceutical RXRX, adding to Roblox on pullbacks

On Monday Eastern Time, the three major indices closed collectively higher. Led by tech stocks, the Nasdaq rose nearly 1%, the Dow edged up to a new all-time high, and the S&P 500 Index rose 0.5%, just a step away from its historical peak.

Overnight, Ms. Wood's trading style continued her dedication to 'disruptive innovation,' with clear capital outflows from SaaS (Software as a Service) and traditional digital advertising sectors, shifting instead to heavily invest in AI pharmaceuticals and the metaverse concept.

Buying focus: Betting on AI healthcare-grade metaverse concept stocks

Ms. Wood’s buying focus that day was very clear: AI combined with biotechnology and the metaverse.

$Recursion Pharmaceuticals (RXRX.US)$ : Increased holdings by 156,300 shares. RXRX is a typical 'AI + pharmaceutical' concept stock, using machine learning to accelerate drug discovery. Ms. Wood's significant increase in holdings shows her strong confidence in the practical application of AI in the biotech field, believing its long-term value is undervalued.

$Roblox (RBLX.US)$ : Increased holdings by 145,600 shares. The company recently suffered a hit to its stock price due to the decline in software stocks, but as the first mover in the metaverse sector, Roblox has always been a key observation target for ARK. This recent near 150,000 share purchase by Ms. Wood suggests that ARK believes the monetization potential of gaming platforms and virtual social interactions is recovering, or they are betting on an upcoming earnings surprise.

Selling direction: Reducing Saas and advertising stocks

On the selling side, Ms. Wood mainly focused on enterprise service software and digital advertising, likely taking profits or reducing exposure to sectors sensitive to macroeconomic conditions.

$PagerDuty (PD.US)$ : Reduced holdings by 147,100 shares. PagerDuty, as an IT incident management platform, despite having stable business operations, may be considered by ARK to lack the explosive growth potential of AI sectors, thus seeing a major reduction in holdings to free up capital.

$Pinterest (PINS.US)$ : Reduced holdings by 46,800 shares. Pinterest, a picture-based social platform heavily reliant on ad revenue, saw reductions possibly reflecting concerns over short-term weakness in the advertising market or the belief that its user growth has hit a ceiling.

$Gitlab (GTLB.US)$ : Reduced holdings by 25,900 shares. This company operates a code hosting platform and falls under routine adjustments within the SaaS sector, potentially cashing out part of its position at a high point.

$The Trade Desk (TTD.US)$ : A reduction of 24,200 shares; also a giant in ad tech. Similar to the logic behind selling PINS, it seems that 'Wood's sister' is trimming positions in ad-related tech stocks.

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