Cathie Wood, head of Ark Investment Management, likes to trade around earnings season.
Sometimes Wood adds or sells shares immediately after his earnings. Sometimes he takes action days before the results, betting on potential profits. That’s what you just did: buy shares of a large-cap tech company ahead of its results next week.
In 2025, Ark Innovation’s flagship ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% over the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 1.84% year-to-date, while the S&P 500 is up 4.27%, Yahoo Finance data shows.
Wood built a reputation after the Ark Innovation ETF returned 153% in 2020. But his style also brings painful losses in bear markets, as seen in 2022, when the Ark Innovation ETF fell more than 60%.
Those changes have weighed on Wood’s long-term earnings. As of April 21, the Ark Innovation ETF has returned a five-year annualized return of -8.52%while the S&P 500 has an annualized return of 12.73% during the same period, according to Morningstar data.
In the 12 months through April 21, the Ark Innovation ETF made about $1.12 billion in net inflows Getty Images
Wood focuses on high-tech companies in artificial intelligence, blockchain, biomedical technology and robotics. She believes these businesses have great growth potential, although their volatility often causes fluctuations in the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to a March 2025 analysis by Morningstar analyst Amy Arnott. That made it the third biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst has not updated the exit ranking for 2025.
In a Bloomberg podcast from March, Wood says the global economy is not headed for a recession, but rather for what she calls a “great acceleration” driven by artificial intelligence and other innovative technologies.
“We’re not going to enter the Great Depression, we’re going to enter the Great Acceleration,” Wood said, noting how the technological revolutions of the past reshaped economic growth.
Related: Cathie Wood Buys $2.5 Million in Falling Mega-Cap Stocks
He noted that global real GDP growth averaged just 0.6% between 1500 and 1900, before the Industrial Revolution raised it to around 3% for more than a century. Now, he argues, a new wave of innovation could drive growth much further.
“We think (technologies) are going to push growth into the 7 to 8 percent range,” Wood said, adding that the figure may actually be conservative.
Wood also noted that AI is driving down costs across industries.
“These technologies are deflationary,” he said. “AI training costs are falling by 75% per year, and inference costs are falling by 85% and even 98% annually.”
In a letter published in January, Wood rejects the “AI bubble” narrative, saying it is “years away” and that “the most powerful capital spending cycle in history” is looming.
“What was once a ceiling on spending appears to have become a floor now that artificial intelligence, robotics, energy storage, blockchain technology and multi-omics sequencing platforms are ready for prime time,” he said.
But not all investors agree with Wood’s optimism. In the 12 months through April 21, the Ark Innovation ETF recorded about $1.12 billion in net outflows, according to data from ETF research firm VettaFi.
On April 21, Wood’s Ark Space & Defense Innovation ETF bought 3,492 shares of Amazon.com, Inc. (AMZN), according to Ark’s daily trading information. These shares are valued at approximately $891,717 based on the last closing price of $255.36.
Amazon shares have risen more than 24% over the past month, driven by optimism around Amazon Web Services (AWS), now the company’s artificial intelligence hub, and a broader market rally following the ceasefire between the United States and Iran.
The e-commerce giant will report its first quarter 2026 results next Wednesday (April 29).
Related: Morgan Stanley Resets Intel Stock Price Target Ahead of Earnings
In the fourth quarter of 2025, AWS sales increased 24% year over year to $35.6 billion, the fastest growth in 13 quarters. The segment generated $12.5 billion in operating income, representing about half of the company’s total.
Bank of America raised its price target on Amazon shares to $298 from $275 before earnings, according to an April 20 research note to TheStreet. The bank has a buy rating on Amazon stock.
“We continue to see Amazon very well positioned to benefit from growing corporate demand for AI capabilities,” wrote Bank of America analysts led by Justin Post.
Analysts expect a wave of positive data from AWS pointing to improved capacity and a stronger industry position compared to 2025.
This week, Amazon announced plans to invest up to $25 billion in Anthropic as part of an expanded deal to build artificial intelligence infrastructure.
In February, Amazon revealed a $50 billion investment in OpenAI, Anthropic’s biggest rival. The same month, Amazon said it expects $200 billion in capital spending this year, most of which will go toward artificial intelligence infrastructure.
“With such strong demand for our existing offerings and core opportunities such as artificial intelligence, chips, robotics and low-Earth orbit satellites, we expect to invest around $200 billion in capital expenditures across Amazon in 2026 and anticipate a strong long-term return on invested capital,” Amazon CEO Andy Jassy said in a statement.
Amazon is not among the top 10 holdings in either the Ark Space & Defense Innovation ETF or the Ark Innovation ETF.
Tesla (TSLA) 9.66%
CRISPR Therapeutics (CRSP) 6.35%
Tempus AI (TEM) 5.22%
Advanced microdevices (AMD) 4.75%
Shopify (STORE) 4.64%
Robinhood Markets (HOOD) 4.55%
Coinbase Global (COIN) 4.33%
Roku (ROKU) 4.15%
Internet Circle Group (CRCL) 3.98%
Beam Therapeutics (BEAM) 3.78%
In addition to purchasing Amazon shares, Wood’s recent moves include purchasing 24,614 shares of Kratos Defense & Security Solutions (KTOS), 4,625 shares of DoorDash (DASH), and selling 81,422 shares of Iridium Communications (IRDM).
Related: Warren Buffett dumped 77% of Amazon to buy rising media stocks
This story was originally published by TheStreet on April 22, 2026, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.
