Cathie Wood Bites the Bullet and Buys Tech Stocks Like Tesla (TSLA.US) and Coinbase (COIN.US) at a Discount

This week's "Black Monday" plunge in US stocks has dealt a huge blow to Cathie Wood's Ark Invest, with the tech sell-off putting pressure on the firm's exchange-traded funds and affecting several companies in its portfolio. However, Wood and her team have seized on the opportunity to buy the dip, adding to positions in key stocks like Robinhood (HOOD.US), Coinbase (COIN.US), Tesla (TSLA.US) and Palantir Technologies (PLTR.US). Robinhood's shares plunged 19.7% on Monday, but Wood took advantage of the opportunity to buy 269,864 shares of the online brokerage in her flagship Ark Innovation ETF (ARKK), which itself fell 8.7% on the day. In addition to Robinhood, Ark Invest also added to its Coinbase position as the cryptocurrency's price fell below $80,000. The firm bought a total of 64,358 shares in ARKK and Ark Financial Innovation ETF (ARKF). Tesla also suffered its biggest drop since September 2020, falling 15.4%, but Wood and her team did not back down, adding 79,318 shares of the electric vehicle giant to their positions in ARKK and Ark Autonomous Technology & Robotics ETF (ARKQ). Palantir's shares fell 10% on Monday, but Wood again took advantage of the market's decline, adding 152,234 shares in ARKK and ARKF ETF. Wood posted on social media that the current market turmoil is the final stage of a "rolling recession" that will give the Trump administration and the Federal Reserve more flexibility than investors expect, paving the way for "deflationary prosperity" in the second half of the year. On Tuesday, Tesla rose 3.79%, Robinhood rose 2.05%, Coinbase rose 6.95%, and Palantir rose 2.19%. Through these moves, Ark Invest has stayed true to its long-held belief that these innovation-driven companies are still good buys despite market volatility.