Cathie Wood's Ark Invest is centered around 'disruptive innovation.'
Wood's ETFs attempt to highlight and bet big on companies who remain on the edge of vital innovation; Wood has been bullish on Tesla and Elon Musk, and her ETFs are full of specially-selected A firms in addition to older tech.
But she doesn't seem to love Apple (APPL) .
DON'T MISS: Cathie Wood Buys Millions of Shares of One Soaring Tech Stock
StockMKTNewz, a Twitter account dedicated to reporting on the stock market, wrote May 14 that Apple stock is "now larger than the combined market cap of all the stocks in the Russel 2000," which is an small-cap index made up of the smallest 2,000 stocks in the Russel 3000 index.
Wood, in response, highlighted some risks the tech company may be facing.
"Apple offers big calls options in payments and health care, BUT its base business is stagnating and its high-margin Apps platform could be disintermediated by ChatGPT plugins," she wrote. "Given these risks, Apple's call options must work in a big way to justify this valuation."
Apple reported earnings of $94.8 billion -- $1.52 per diluted share --May 4 for its second fiscal quarter of 2023, down 3% year-over-year.
Though iPhone sales were strong, this marked the second quarter in a row of negative year-over-year growth for the company. Mac sales fell more than 30%.
Speaking at the Berkshire Hathaway annual shareholder meeting May 6, Warren Buffett said that Apple is a "better business than any other we own."
"Apple has a position with consumers where they're paying $1,500 for a phone, and these same people pay $35,000 for a second car. And if they had to give up a second car or their iPhone, they'd give up their second car."
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
