In this article we take a look at the latest portfolio updates by Cathie Wood. We will discuss some important stocks the hedge fund investor sold in the first quarter of 2022.
Cathie Wood’s hedge fund ARK Investment continues to suffer losses as much-awaited gains from her “disruptive innovation” thesis remain elusive amid the current turmoil in the market which is hammering growth stocks. April was probably the worst-ever month for Cathie Wood’s ARK Innovation fund. As of April 29, the fund was down 26%.
However, despite the losses, ARK investors aren’t jumping the ship. In fact, data shows that they are funneling more money into Cathie Wood’s bets. Investors put $658 million into the fund in 2022 through April 21, according to FactSet.
Cathie Wood is also making major updates to her portfolio. Although we still see high-risk names like Teladoc Health, Inc (NYSE:TDOC) and Zoom Video Communications, Inc. (NASDAQ:ZM) in her latest portfolio, she sold many notable stocks in the first quarter of 2022, including Netflix, Inc. (NASDAQ:NFLX), Palantir Technologies Inc. (NYSE:PLTR) and Twitter Inc (NYSE:TWTR).
Tesla Inc. (NASDAQ:TSLA) continues to be the biggest holding of Cathie Wood as ARK reported a $1.72 billion stake in the electric car company at the end of the first quarter.
Cathie Wood of ARK Investment Management
Let’s take a look at some important stocks Cathie Wood sold in the first quarter.
10. Best Buy Co., Inc. (NYSE:BBY)
Best Buy Co., Inc. is one of the stocks dumped by Cathie Wood in the first quarter of 2022. Best Buy Co., Inc. posted weak sales for the holiday quarter in March after which the stock fell. The Omicron variant and supply-chain disruptions affected Best Buy Co., Inc. in the period. Best Buy Co., Inc. said its revenue in the three-month period ending January 29 came in at $16.37 billion, as compared to the consensus estimate of $16.59 billion.
A total of 29 hedge funds tracked by Insider Monkey had stakes in Best Buy Co., Inc. as of the end of the fourth quarter. Cliff Asness’ AQR Capital was the leading shareholder with a $132 million stake in the company. Like Tesla Inc., Netflix, Inc., Palantir Technologies Inc. and Twitter Inc, Best Buy remains on the radar of growth investors.
9. The Boeing Company (NYSE:BA)
Cathie Wood sold her entire stake in The Boeing Company in the first quarter. The stock is down 26% year to date. The Boeing Company recently posted weak first quarter results after which several Wall Street analysts cut their price targets for the stock. The Boeing Company posted a loss of $2.75 a share in the quarter. Analysts were expecting a loss of $0.15 per share. As of the end of the fourth quarter of 2021, 50 elite hedge funds in Insider Monkey’s database held long positions in The Boeing Company.
8. Paypal Holdings Inc (NASDAQ:PYPL)
Cathie Wood also booted Paypal Holdings Inc from her portfolio in the first quarter of 2022. Latest filings reveal that Wood, who had 217,000 shares of Paypal Holdings Inc when she entered 2022, sold her stake in the payments company in the first quarter. Paypal Holdings Inc has been a huge money loser for investors in 2022. The stock is down a whopping 53% so far this year. Hedge funds were already beginning to cut their stakes in Paypal Holdings Inc as our data shows that 110 elite funds had stakes in the company in the fourth quarter of 2022, as compared to 123 funds in the year-ago period.
7. Pinduoduo Inc – ADR (NASDAQ:PDD)
Chinese technology platform company Pinduoduo Inc – ADR, which is down 50% in the past 6 months, was also sold entirely by Cathie Wood’s hedge fund in the first quarter of 2022. In April, Goldman Sachs analyst Ronald Keung assumed coverage of Pinduoduo Inc – ADR with a Buy rating and $95 price target. In March, Pinduoduo Inc – ADR fell after it reported lackluster fourth quarter performance. Revenue in the period came in at $4.27 billion, below the consensus forecast of $4.68 billion.
Hedge funds were turning bearish on Pinduoduo Inc – ADR amid Chinese crackdown on tech companies. At the end of the fourth quarter, 34 funds in our database had stakes in the company, down from 49 funds a quarter earlier. Hedge funds are instead focusing on mainstream tech stocks like Tesla Inc., Netflix, Inc., Palantir Technologies Inc. and Twitter Inc.
6. Snap Inc. (NYSE:SNAP)
Snap Inc. is yet another tech stock losing value amid uncertainty around growth stocks in the market. The stock is down 44% in the last 6 months. Snap Inc.’s loss widened in the first quarter of 2022 but user growth was in-line with expectations. Daily active users jumped 18% year over year to 332 million, compared to consensus estimate of 331 million.
Cathie Wood, however, sold her entire stake in Snap Inc. in the first quarter of 2022. As of the end of the fourth quarter of 2021, Stephen Mandel’s Lone Pine Capital was the leading shareholder of Snap Inc. with a $1.6 billion stake.
5. Twitter Inc (NYSE:TWTR)
Cathie Wood dumped 93% of her stake in Twitter Inc in the first quarter of 2022. Twitter Inc has been gaining a lot of attention since Elon Musk announced his plans to buy the company. Some analysts are hopeful that Musk’s plans would likely infuse huge engagement and growth in Twitter Inc. Musk recently hinted that Twitter Inc will remain free for “casual” users but could charge a “slight cost” for commercial users.
As of the end of the fourth quarter of 2021, 83 funds had stakes in Twitter Inc, as compared to 94 funds in the previous quarter.
4. Stitch Fix Inc (NASDAQ:SFIX)
Cathie Wood’s fund initiated a stake in personal styling service Stitch Fix Inc in the fourth quarter of last year but was quick to unload the stake as it sold all of its shares in the company in the first quarter of 2022. Stitch Fix Inc is down a whopping 70% in the last 6 months. In March, Stitch Fix Inc cut its full-year guidance which caused the stock to go in a free fall.
Of the 924 funds tracked by Insider Monkey, 35 had stakes in Stitch Fix Inc as of the end of the fourth quarter of 2021. David Greenspan’s Slate Path Capital has an $81 million stake in Stitch Fix Inc as of the end of December.
3. Netflix, Inc. (NASDAQ:NFLX)
Cathie Wood has been cutting her stake in Netflix, Inc. since the first quarter of 2021. In the first quarter of this year she sold 98% of her stake in the struggling streaming giant which was once the darling of tech stock investors. Netflix, Inc. lost a whopping 200,000 subscribers in the first quarter, while analyst were expecting Netflix, Inc. to add 2.5 million subscribers. Netflix, Inc. dropped a bombshell on investors by announcing that it expects to lose another 2 million subscribers in the second quarter.
Bill Ackman recently said that his hedge fund sold its entire stake in Netflix, Inc. after the company disclosed the results, taking a $400 million loss. Ackman said that Pershing Square has “lost confidence” in its ability to predict Netflix, Inc.’s future prospects.
2. Palantir Technologies Inc. (NYSE:PLTR)
Though Cathie Wood still owns 612,000 shares of Palantir Technologies Inc., she cut her stake by 99% in Peter Thiel’s software company in the first quarter of 2022. In the last quarter of 2021, Cathie Wood’s ARK had owned 35.2 million shares of Palantir Technologies Inc.. Palantir Technologies Inc. shares have lost 51% in the last 12 months.
Insider Monkey’s database of elite funds show that 33 hedge funds had stakes in Palantir Technologies Inc. as of the end of the fourth quarter of 2021. Jim Simons’ Renaissance Technologies has a $266 million stake in Palantir Technologies Inc. as of the end of December.
1. Opendoor Technologies Inc. (NASDAQ:OPEN)
Cathie Wood sold her entire stake in online real estate company Opendoor Technologies Inc. (NASDAQ:OPEN) in the first quarter of 2022. ARK had reported owning 1.62 million shares of Opendoor Technologies Inc. at the end of the fourth quarter of 2021. The Pulte Family recently disclosed an investment of $2.45 million in Opendoor Technologies Inc..
“While some home builders lag when it comes to technology, there are exciting opportunities for those who seize the opportunity like OpenDoor has,” the family’s representative said in a press release.
Opendoor Technologies Inc. is down 48% year to date.
Follow Insider Monkey on Twitter
Suggested Articles:
- Jim Cramer Doesn’t Like These 10 Stocks
- 12 Best American Stocks To Buy in 2022
- Michael Burry Is Selling These 5 Stocks
Disclose. None. Cathie Wood Is Selling These 10 Stocks in 2022 is originally published on Insider Monkey.
