Tesla Motors Inc (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX) are among the companies ARK Investment Management LLC bets on and the firm’s founder and CEO, Catherine Wood, explained why in a discussion on CNBC.
Noticing that ARK Investment Management LLC likes to invest in companies like Tesla Motors Inc (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX), Seema Mody asked why the preference for technology stocks.
Wood said that society right now is “seeing a shift from the old world to the new world.”She said that a good example where this trend is evident is the recent performance reports from International Business Machines Corp. (NYSE:IBM), SAP SE (ADR) (NYSE:SAP) and Oracle Corporation (NYSE:ORCL).
With this trend from old technology to new technologies, it makes sense to invest in new technology companies even though people would want to stay away from the volatile sector as mentioned by Mody. This investments are investments in innovation, Wood said.
“In the Web X space which is everything internet. […] Netflix is another one which was beaten up after its [quarterly performance report]. We think people are completely misinterpreting what’s going on there and we think they may be in the saddle part of the S curve but we think they going to be one of the few winners,” Wood said about Netflix, Inc. (NASDAQ:NFLX).
Citing a few other examples of good investments such as athenahealth, Inc (NASDAQ:ATHN) and Stratasys, Ltd. (NASDAQ:SSYS), Wood goes on to name Elon Musk’s Tesla Motors Inc (NASDAQ:TSLA).
“In our industrial innovation theme, […] we really like Tesla in the [electronic vehicle] space. These are high octane stocks perhaps but they are gaining tremendous share and they are innovating and making a big difference in the world.
Daniel Benton’s Andor Capital Management is a Tesla Motors Inc (NASDAQ:TSLA) investor with a reported 1.25 million shares in the company by the end of the second quarter. Also by the same period, Michael Moriarty’s Teewinot Capital Advisers reported owning 64,875 shares in Netflix, Inc. (NASDAQ:NFLX).