Cathie Wood Is Selling This High-Flying Stock. Here's Why You Should Buy It Instead
Cathie Wood remains optimistic. Her ARK Invest exchange-traded funds (ETFs) have continued to scoop up stocks during the steep downturn this year.
But she's apparently not optimistic about all of her ARK holdings. Wood is selling one high-flying stock. Here's why you should buy it instead.
Trimming a big winner
Wood's ARK Genomic Revolution ETF (NYSEMKT: ARKG) sold off shares of Vertex Pharmaceuticals (NASDAQ: VRTX) earlier this month. She hasn't completely exited the position, though. ARKG still owns over 135,000 shares of the biotech stock.
We don't know for sure why Wood chose to sell Vertex. Perhaps the most likely reason is that she's taking some profits off the table after the stock skyrocketed more than 70% year to date.
It should be noted that Wood also owns a significant stake in Vertex's partner, CRISPR Therapeutics (NASDAQ: CRSP). The gene-editing biotech ranks as ARKG's fifth-largest holding. Maybe Wood didn't see the need to have quite as much money riding on two companies with partially intertwined prospects.
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