Cathie Wood has been a fan of Elon Musk for a while, now. In May, Wood said that Tesla is the "biggest AI play out there," and remains convinced that Tesla is positioned to dominate the nonexistent autonomous taxi business, one she thinks could be worth $10 trillion by 2030.
But when it comes to one of Musk's other companies -- Twitter -- Wood is a little less gung-ho.
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Wood's Ark Invest Venture Fund has written down its Twitter stake by 47% since Musk took over last year, according to the Wall Street Journal.
“We take fair valuation very seriously and absolutely have had to write that down," Wood said. “The write-down is not representative of our fundamental outlook and belief in the long-term return on investment we believe that it will have for our shareholders."
Musk's rein over Twitter has been marked recently by dropping ad revenue, rate limits, lawsuits, and, of course, competition in the form of Mark Zuckerberg's Threads.
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"We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load," Musk tweeted July 15, adding the next day: "We did not see the increase in advertising revenue that was expected in June. July is a bit more promising."
Despite these challenges, Wood likes how Twitter looks long-term, specifically noting Musk's vision of an everything app.
“I think Threads has lit the competitive fire or taken it up a notch and it will be good for Twitter," she said. "We also think that longer term, Elon and team are very serious that they’re going to turn this into an everything app."
Ark's Venture Fund is a public-private crossover fund that is invested in such private companies as Anthropic, Epic Games and Discord. Ark's flagship ETF, Ark Innovation, owns around 3.6 million shares of Tesla, valued at more than a billion dollars.
