Cathie Wood is the New Face of the Market.
Like Elaine Garzarelli, Peter Lynch, Bill Miller, Henry Blodget, Mary Meeker or the guys from the Big Short in cycles before, Wood has become the public face of this market’s moment, personifying the crazy gains in crypto, fintech, cloud computing and biotech stocks.
ARK is known for its ETFs (or exchange traded funds), the most famous being a “disruptive innovation” ETF (ticker ARKK), which has run circles around the stock market averages, up 152% last year and over 45% every year on average over the past five years. Early last month, Bloomberg reported that “Ark’s exchange-traded fund assets under management crossed $50 billion this week, up from only $3.6 billion at this time last year.”
Institutional Investor, the Wall Street Journal’s Jason Zweig and Morningstar, which notes that ARK last year grew much faster than any fund company in history,
Wood posts essays here and on ARK’s website (which sells ARK merch.) She has 717,000 followers on Twitter. On YouTube her videos get a million views.
All of that, plus the performance of her ETFs have won her the hearts (and wallets) of hordes of, well, fans. She’s been called “Aunt Cathie,” “Cathie Bae” and “tendie goddess” on Reddit’s Wall Street Bets. A Korean newspaper reports her nickname is “Money Tree.”
Jesus Calling
“I decided to name my company after the Ark of the Covenant, because as I was going through that very difficult period starting in ‘06, where the market, nothing made sense to me, I started reading the One-Year Bible, after I would read the passage for the day, I would then just open it up randomly and say, “God, speak to me. Just show me what to do. Show me Your will. Show me Your way.”
Here is her Jesus Calling Podcast.
Wood Sets $3 Trillion Valuation on Tesla
Bloomberg notes Cathie Wood’s Ark Has a New Price Target for Tesla: $3,000
Cathie Wood’s Ark Invest Management expects Tesla Inc. stock to hit $3,000 by 2025, up from its current price of $655. At that price, the company would be worth almost $3 trillion, based on the number of shares outstanding.
Ark expects there’s a 50% chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly, according to a Friday note on Ark’s website.
Wow.
Do I file this under technology or prophesy?
Mish
I would file this under “talking her book BS”
Well, at least Musk has some vison for the future. With $3 trillion he can probably build an Earth space station, a Moonbase and get someone to Mars while NASA will still be playing with their cojones.
Catie, you are my hero. I have held Tesla since 2013, through thick and thin. I’m on board with Elon’s vision.
Feels like 2000 type valuations in tech. Has anyone noticed the price of a new car keeps going higher. Only a matter of time before everyone is priced out. There is no way this bubble doesnt end badly.
Bells are ringing.
Loudly.
I was cosidering the Tesla Sport @ $109,000 Canadian but their showcase model had mediocer interior, very poor body assemble, average design and test drive performance. So with no comarison, Superior High Quality Inerior, presision body assembly, AMAZING DESIGN, for $90,000. So I’m waiting for my C8 Corvettee and have $19.000 to use on a holiday. I’m sorry for those fools that listen or follow Cathie Wood. She doen’t know what she’s talking about on TV, text or media.
WHY DOES MY POST DISAPPEAR BEFORE I finish writing.
Always write in notepad or similar, THEN paste it into this awful street.com platform. I hope MISH isn’t paying for this.
If the FED keeps lending trillions into existence, that doesn’t sound unreasonable.
Crypto holdings by Telas might help if it reaches the projected $120K.
The dynamics are beyond me.
Along the lines of Trend/Momentum players pushing higher and backed up by market cap weighted ETFs that have no choice but to follow then supporting the price and keeping the trend in play so Trend/Momentum are still kept interested.
Rinse-repeat until valuations make no sense and need to be rationalised by “this time its different”.
Rumour has it that she will be the centerfold of the next Barron’s.
You guys probably missed it, but I had put a $10T valuation on Apple.
Just another Guru of the month. Tesla valuation is something I don’t look at. Either you believe in the man or not is what it comes down to and I do and it has made me happy. I wish I had SpaceX stock but I can’t buy them yet. When you think of it SpaceX if it works out would be the most open-ended stock story ever. First low orbit, then the Moon and Mars. After that you have the Solar System and then the Galaxy and finally the Universe to conquer (from an investment perspective).
Coming soon to a theatre near you from the producers of saving the environment — massive pollution from rockets and unimaginable amounts of space debris and light pollution.
It’s a small price to pay for Earth to become the capital of the Galaxy and home to the Emperor.
Ms. Wood: Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.
Are you talking about how kids are made?
Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.
Flavor of the month. She’s everywhere I look.
The market didn’t make sense to me either in 2007, so I just GTF out of it. I guess I should have prayed on it first.
The market doesn’t make sense to me now either, and I’m still staying out of it. Need something besides the Powell put to make me want to own stocks.
Same, really struggling with it. But the FOMO is real, especially with people crowing about making “retire now” wealth while I’m stuck in mostly cash and the nastiest corporate job of my career. Sigh…
A friend from high school retired in December at 50, said his wealth management firm “had an amazing year.” That’s right, 2020 was an amazingly good year for those with tons of assets. Must be nice!
The dynamics are beyond me.
Along the lines of Trend/Momentum players pushing higher and backed up by market cap weighted ETFs that have no choice but to follow then supporting the price and keeping the trend in play so Trend/Momentum are still kept interested.
Rinse-repeat until valuations make no sense and need to be rationalised by “this time its different”.
Not many are making any money because they haven’t sold, and won’t until it’s too late.
What value would you place on fully autonomous driving technology? That would open up taxi service, delivery, trucking, etc?
$0 because it’s not happening.
This valuation is greater than the total annual market worldwide. So if you assume that Tesla will get 100% of the market the P/S ratio would be greater than 1. I think that she is trying to generate hype to prop up her funds.
Also I think that Jesus wasn’t much of a capitalist if you have read his words.