Cathie Wood buys $17.2 million of tumbling Alphabet shares
Cathie Wood, head of Ark Investment Management, bought 60,553 shares of Google parent Alphabet during a market selloff.
The short version
- Alphabet stock is down nearly 10% this year.
- Check your index funds or retirement accounts holding Alphabet.
- Big tech selloffs hit broad market funds when AI spending raises costs.
Why it matters to you. If you hold broad index funds or technology sector holdings in your portfolio, big tech spending swings directly affect your long-term returns.
Cathie Wood, the head of Ark Investment Management, just spent $17.2 million to buy more than 60,000 shares of Google parent Alphabet during a sharp market selloff, according to Yahoo Finance. The purchase came right after Wood sold nearly 59,000 shares of the tech giant earlier in the week.
Alphabet stock is down nearly 10% year-to-date after plunging 12% following disappointing third-quarter results. The company reported $127.57 billion in sales and earnings per share of $2.12, both missing Wall Street estimates. Investors have grown concerned over massive AI spending plans that pushed Alphabet's free cash flow deficit to $9.07 billion.
Wood remains optimistic that AI-driven productivity gains will boost corporate profits and ease affordability pressures over the long term. Not all investors share her view, as her flagship Ark Innovation ETF saw roughly $2.19 billion in net outflows over the past month.
Even the biggest Wall Street fund managers cannot predict the bottom when tech giants spend billions on unproven server infrastructure.
Photo: Austin McKinley, CC BY 3.0, via Wikimedia Commons
Figures as reported by Yahoo Finance.
