Cathie Wooden, head of Ark Funding Administration, likes to lock in positive aspects when her tech darlings rally.
That is precisely what she’s doing with Snowflake, trimming her place after the cloud software program inventory surged practically 10% over the previous 5 buying and selling days forward of earnings.
In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the identical interval. However up to now this yr, Wooden’s flagship Ark Innovation ETF (ARKK) is down 8.51% as of July 31, whereas the S&P 500 surged 9.41%, Yahoo Finance information reveals.
Wooden gained a repute after the Ark Innovation ETF delivered a 153% return in 2020. However her type additionally brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled greater than 60%.
These swings have weighed on Wooden’s long-term positive aspects. As of July 31, her Ark Innovation ETF has delivered a five-year annualized return of -9.75%, whereas the S&P 500 has an annualized return of 11.25% over the identical interval, in keeping with information from Morningstar.
Over the previous 12 months by way of July 30, the Ark Innovation ETF noticed roughly $1.49 billion in internet outflows.Getty Photos
Cathie Wooden flags “the deflationary influence” of tech innovation
Wooden often focuses on high-tech corporations throughout synthetic intelligence, blockchain, biomedical know-how, and robotics. She believes these companies have sturdy progress potential, although their volatility usually causes fluctuations within the Ark’s funds.
Over the last decade ended 2025, the Ark Innovation ETF worn out practically $5 billion in investor wealth, in keeping with an evaluation by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer amongst mutual funds and ETFs within the rating.
Wooden believes buyers have been specializing in the mistaken indicators as they assess the outlook for inflation, rates of interest, and shares.
In a June publish on X, Wooden mentioned the bond market is more and more reflecting the deflationary influence of technological innovation, significantly synthetic intelligence, quite than the inflation dangers many buyers nonetheless worry.
Wooden pointed to the continued flattening of the Treasury yield curve regardless of a pointy rise in oil costs over the previous yr. In earlier cycles, she famous, an power shock of that magnitude would have pushed long-term yields greater.
Wooden believes the bond market is “discounting one thing far more highly effective: the deflationary influence of technological innovation, significantly synthetic intelligence, which is starting to extend productiveness throughout broad swaths of the financial system. ”
She additionally mentioned easing tensions with Iran and a decline in oil costs might push inflation even decrease.
“The subsequent part of this cycle could possibly be characterised by accelerating progress, declining inflation, falling rates of interest, and a strengthening U.S. greenback,” Wooden mentioned. “That mixture would create a remarkably supportive backdrop for innovation-led equities and the applied sciences driving the following productiveness growth.”
Not all buyers agree with Wooden’s optimism. Over the previous 12 months by way of July 30, the Ark Innovation ETF noticed roughly $1.49 billion in internet outflows, in keeping with information from ETF analysis agency VettaFi.
Cathie Wooden sells $5.5 million of Snowflake inventory
On July 31, Wooden’s Ark Innovation ETF bought 18,855 shares of Snowflake Inc (SNOW), in keeping with its every day buying and selling data. Primarily based on the newest closing value of $293.28, these shares have been value about $5.5 million.
Snowflake is a software program firm that helps companies deal with massive quantities of information. Earlier this yr, buyers frightened that AI might disrupt the software-as-a-service (SaaS) enterprise mannequin, which costs prospects based mostly on the variety of customers.
However that is not the story for Snowflake.
Shares of Snowflake have surged 9.41% over the previous 5 buying and selling days, largely as a result of a bullish name from Wells Fargo. On July 29, the financial institution raised its value goal on the inventory to $500 from $320 whereas sustaining its Obese ranking, saying “the sport has modified,” in keeping with The Fly.
That’s the highest goal on Wall Avenue, implying roughly 70% upside from the July 31 shut of $293.28.
Wells Fargo believes AI brokers are accelerating buyer spending on Snowflake, whereas buyers are underestimating the corporate’s AI-driven progress potential.
The analyst sees Snowflake as a near-term AI beneficiary “with out capex necessities or mannequin dependence.” Meaning the corporate can revenue with out having to spend closely on infrastructure.
Yr-to-date, Snowflake inventory is up 33.7%, together with a 36.48% soar on Might 28 after the corporate delivered stronger-than-expected earnings and introduced plans to spend $6 billion on Amazon Net Providers infrastructure over the following 5 years. That was Snowflake’s greatest single-day acquire on report.
For its fiscal first quarter, Snowflake reported adjusted earnings of 39 cents per share and income of $1.39 billion, which was up 33% from a yr earlier. Analysts have been anticipating earnings of 32 cents per share and income of $1.32 billion, CNBC reported.
Snowflake additionally issued upbeat steerage. It forecast fiscal second-quarter product income of $1.415 billion to $1.420 billion and an adjusted working margin of 12.5%. Wall Avenue was on the lookout for product income of $1.37 billion and an adjusted working margin of 11.9%.
Snowflake is estimated to report its fiscal Q2 earnings on August 26.
“AI continues to be a robust tailwind for Snowflake, and Q1 marks a transparent inflection level in that journey. With Cortex Code and Snowflake Intelligence, we’re extending from the trusted basis for enterprise information and context to develop into the management airplane for the Agentic Enterprise,” Snowflake’s CEO Sridhar Ramaswamy mentioned in a press release.
“We’re seeing sturdy momentum from each AI-driven acceleration of our core platform and rising adoption of our first-party AI merchandise, positioning Snowflake to guide on this new period.”
Wooden considerably elevated her Snowflake place on June 18, buying 223,690 shares valued at roughly $52 million on the time. Extra just lately, her funds started trimming the stake, promoting one other 14,684 shares on July 20. This was doubtless a profit-taking transfer earlier than earnings.
Snowflake shouldn’t be in Ark Innovation ETF’s high 10 holdings.
High 10 Holdings within the Ark Innovation ETF by Portfolio Weight as of July 31, 2026:
Tesla (TSLA) – 9.42%
SpaceX (SPCX) – 4.92%
Tempus AI (TEM) – 4.81%
CRISPR Therapeutics (CRSP) – 4.66%
Coinbase (COIN) – 4.54%
Shopify (SHOP) – 4.54%
Superior Micro Units (AMD) – 3.96%
Circle Web Group (CRCL) – 3.82%
Robinhood Markets (HOOD) – 3.54%
10x Genomics (TXG) – 3.43%
Aside from promoting Snowflake shares, Wooden’s newest trades included shopping for CoreWeave (CRWV), Circle Web Group (CRCL), Pony AI (PONY), and a small quantity of Kodiak AI (KDK).
She additionally trimmed positions in Shopify (SHOP), 10x Genomics (TXG), Brera Holdings (SLMT), Figma (FIG), Strata Important Medical (SRTA), and Iridium Communications (IRDM).
