Some experts have questioned whether Elon Musk’s purchase of a 9% stake in Twitter (TWTR) and posting to the board will make any difference in the financial performance of the social media stalwart.
But renowned investor Cathie Wood, chief executive of Ark Investment Management, says something big could result: change in management at Twitter.
Tesla (TSLA) Chief Executive Musk has given a “strong signal” to Twitter CEO Parag Agrawal, Wood told Bloomberg. “This could be setting up for another leadership change.” Company Co-Founder Jack Dorsey left the chief executive's position in November, and Agrawal took over.
Tesla is the biggest holding in Ark’s flagship Ark Innovation ETF (ARKK), accounting for 9% of fund assets with a valuation of $1.3 billion.
Musk already has started throwing his weight around at Twitter. On Monday, he put a poll on the site, asking its users whether they want an edit button. Within minutes, the poll had drawn more than half a million votes, with about 75% saying yes.
While Musk on Monday was doing his thing with Twitter, Wood was purchasing shares of two biotechnology companies and a robotics company. (All the valuations below are as of Monday’s close.)
Ark Innovation bought 867,331 shares of UiPath (PATH), the robotics company, valued at $19.8 million. Ark Genomic Revolution ETF (ARKG) purchased 311,273 shares of biotech company Nurix Therapeutics (NRIX), valued at $4.5 million. And Ark funds snatched 7,257 shares of Twist Bioscience (TWST), valued at $391,878.
In other Cathie Wood news, she has expressed opposition to much more in the way of interest-rate increases from the Federal Reserve. Her thoughts came in a web presentation and tweet over the weekend.
In the Saturday tweet, she wrote, “Yesterday, the yield curve - as measured by the difference between the 10-year Treasury and 2-year Treasury yields - inverted, suggesting that the Fed is going to raise interest rates as growth and/or inflation surprise on the low side of expectations … which will be a mistake.”
Inversion means two-year Treasury yields exceed 10-year yields, which is the opposite of normal. Investors usually expect higher income when they invest in longer maturities.
Wood noted to Bloomberg that many of her funds’ biggest holdings have soared since the Fed raised rates in March.
