Cathie Wood Abandons Ship On This Longtime Favorite After It’s Worst Month in 3 Years

One day, Wall Street will get the bright idea to enshrine its greatest minds in a grand Investing Hall of Fame (right across from the infamous bull statue). You’ll walk through its marble entrance, past statues of Warren Buffett, who’s probably holding a cherry Coke in one hand and an old-school stock certificate in the other. Charlie Munger’s bust will come next, forever frozen mid-eye roll after hearing a retail trader say “stonks only go up.” Peter Lynch will have his own section dedicated to spotting the next 10-bagger, while Carl Icahn’s plaque will simply read: “Corporate America’s worst nightmare.”

Then, just as you’re soaking in the presence of investing royalty, you round the corner… and there she is. Cathie Wood. A Tesla-branded cape fluttering behind her. A permanent, unshakable belief that disruptive innovation will always beat fundamentals. The clown in the soldier meme made real.

And look, before you get defensive, let’s be fair. Cathie had her moment. When her ARK Innovation ETF shot up 290% from 2020 to 2021 (going from $40 to $156) she was far more than another boring fund manager… she was a movement. The high priestess of the retail investor boom, the queen of growth stocks, and the face of a new kind of investing that told people, “Ignore the P/E ratio… just trust the vision.”

The problem is that markets have a way of punishing unchecked optimism. Since February 2021, ARKK has been in freefall… down 69% from its peak. To put that in perspective, if you had invested $100,000 at the top, you’d be staring at just $31,000 today (enough said). And now, in 2025, Cathie is making headlines again… and this time it’s for selling Meta for the first time in nearly a year.

Cathie’s been a believer in Zuckerberg’s empire for a while. As of December 31, ARK funds held 460,000 shares of Meta, making it one of her biggest tech positions. But this week, she pulled the trigger and offloaded 12,595 shares on March 17 and another 2,160 on March 19, pocketing $7.62 million at $604 per share.

Now, the timing of this sale is interesting. Just one month ago, Meta was up 26% for the year. Fast forward to today, and it has wiped out all those gains, officially becoming the last of the “Magnificent Seven” stocks to turn negative in 2025.

And it makes sense when you look at how much Meta’s planning to spend on AI. The company is aggressively pouring billions into its Llama open-source AI models, which just hit 1 billion downloads. A big milestone? Absolutely. But Wall Street doesn’t love how much it's costing. KeyBanc Capital Markets analyst Justin Patterson just lowered his price target on Meta from $750 to $710, warning that Meta’s AI investments are locking it into high fixed costs… the kind that can’t easily be cut back if the economy slows down (warning: the economy is in fact, slowing down).

In addition to throwing too much money in the AI fire, Meta is still facing external pressures. Concerns about tariffs under the Trump administration and competition from China’s AI startups like DeepSeek have investors wondering whether Meta’s long-term AI dominance is as guaranteed as Zuckerberg hopes (we all haven’t forgotten the metaverse flop that was supposed to be the next big thing… remember when people were paying millions for digital land?).

The stock is now trading at $582, its lowest since late 2024. Not even a record-breaking Q4 earnings report or its historic 20-day winning streak from January to mid-February could save it from the current downturn. Meta is down 17% in the past month alone… the worst monthly drop since October 2022. And yet… this is when Cathie decides to sell? She loves to buy high and sell low.

So where’s that Meta money going? If you guessed Tesla and Bitcoin-related stocks, congratulations… you understand the ARK playbook. In a recent Bloomberg interview, Cathie said she’s “taking advantage of this risk-off period” (aka: doubling down on the dip and hoping for a rebound). She’s using the Meta cash to buy more Tesla and Bitcoin-adjacent names like Coinbase and Robinhood.

So, the question still stands… does Cathie belong in the Investing Hall of Fame? Cathie Wood is a spectacle. She makes massive, high-conviction bets, speaks about the future with unwavering confidence, and is absolute must-watch financial entertainment.

But can we all stop including her alongside Warren Buffett? Her track record is boom or bust. When her bets hit, she looks like a genius. When they don’t, well… ARKK is still down 69% from its peak, and that’s after a 68% rally in 2023.

If Wall Street does build an Investing Hall of Fame, Cathie should be in it. But her plaque belongs in the “Wildest Market Rides of All Time” exhibit, right next to Roaring Kitty and GameStop.

PS: Recently, I broke down a stock that both Nancy Pelosi and Cathie Wood just bought… but here’s the thing: it was only available for premium members.

Not only did I reveal the stock, but I also dissected Nancy’s trade structure, proving she’s in it for the long haul. If you weren’t a premium member, you missed the breakdown on why her entry signals serious conviction… the kind of insight that separates smart traders from the ones just chasing headlines.

If you want real stock picks and trade ideas every single day—not just the surface-level news everyone else sees… you need to check out our premium membership. We dig through SEC filings and insider trades daily, flagging the best opportunities. And when we find a can’t-miss trade, we break it down in a full write-up… so you know exactly what’s happening and why it matters.

Don’t miss the next one. Click here and become a premium member today.

Stock.News has positions in Coca-Cola, Meta, Robinhood, and Tesla.