Business Maverick: Cathie Wood Thanks Musk for Twitter Deal Despite Tesla Stock Hit

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Cathie Wood, a long-time champion of Elon Musk’s Tesla Inc., thanked him for his purchase of Twitter Inc. -- a move he said would unleash the site’s “tremendous potential.”

Shares of Tesla have dropped by 10% over the past two days as Musk plans to use stock in the electric-car maker as collateral for a loan financing the takeover. Tesla was the biggest holding in Wood’s Ark Innovation and Ark Next Generation Internet ETFs at the end of last week, making up 10.1% and 9.6% of their assets, respectively, according to data compiled by Bloomberg.

Wood also missed out on some of the gains from the Twitter acquisition after cutting ARKW’s stake in the social-media company from 5.3% of the fund at the end of last year to 1.7% by April 1, the last business day before Musk disclosed that he’d become Twitter’sWhen asked if Ark will now buy Twitter, a spokesperson said the company doesn’t comment on daily trades.

The firm’s innovation-themed funds have already been under pressure from rising interest rates, which have weighed on the valuations of growth stocks particularly hard. ARKK has fallen 45% this year, while ARKW has dropped 42%.

 

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