Cathie Wood Boosts Tesla, Palantir Holdings Amid Tech Selloff

Cathie Wood's Ark Invest capitalized on a significant tech sector selloff by making substantial stock purchases on Monday, acquiring shares of Tesla, Palantir, Coinbase, Advanced Micro Devices, Tempus AI, and Robinhood amidst recession fears that led the 'Magnificent 7' to lose over $750 billion in market capitalization. Wood's buying strategy reflects her belief in 'buying the dip,' as she anticipates a 'deflationary boom' in the US economy in the latter half of the year, viewing current market volatility as the last phase of a rolling recession. Among the notable transactions, Ark bought approximately $17.6 million in Tesla shares and increased its holdings in Palantir and Coinbase significantly. Tesla's stock, in particular, has faced challenges including declining sales and increased competition, prompting Wood to see its recent price drop as a buying opportunity. Analysts suggest that the downturn may yield better long-term prospects for these tech stocks, with some expressing optimism about Tesla's future. Overall, Wood's aggressive investing strategy during this period of market stress highlights her confidence in the potential recovery of these innovative companies.