(Bloomberg) -- A day after Cathie Wood described her speculative tech strategy as a “deep-value” portfolio loaded with underpriced companies, another tumultuous trading session is making some big names she owns even cheaper.
Most Read from Bloomberg
Russian Media Reports Fire at Gas Pipeline: Ukraine Update
Morgan Stanley Relationships on Wall Street Snared in Probe
India Protests Against Singapore PM’s Comments on Lawmakers
Lavrov Agrees to Meet Blinken, U.S. Says: Ukraine Update
The Housing Boom’s Mortgage Rate Threat Is Worse Than It Seems
Wood favorites including Roku Inc. and Tesla Inc. were among stocks slumping Friday as part of a broad market selloff, with moves exacerbated by a $2.2 trillion options expiration. Roku plunged 22%, while Tesla fell 2%.
The head of Ark Investment Management said her technology bets are “way undervalued relative to their potential,” in an interview on CNBC Thursday. The companies in traditional benchmarks will be disrupted by innovative technologies and will be where risk lies, she said.
Ark funds have dropped as investors digest high inflation prints and prepare for the Federal Reserve to raise interest rates. The flagship ARK Innovation ETF (ticker ARKK) has tumbled 58% since its peak on Feb. 16, 2021.
Along with saying Roku will become an “advertiser of choice,” Wood in the CNBC interview also said Roblox Corp. -- which fell 9% Friday -- is one of the best ways to play the metaverse.
(Updates prices)
Most Read from Bloomberg Businessweek
Wall Street Is Buying Starter Homes to Quietly Become America’s Landlord
Tourists Returning to Thailand Find Closed Bars, Empty Streets
Elon Musk’s Boring Company Plots Texas Tunnels
‘Zero-Click’ Hacks Are Growing in Popularity. There’s Practically No Way to Stop Them
Peter Thiel Is Taking His Talents to Mar-a-Lago
©2022 Bloomberg L.P.
