CNBC host Jim Cramer created a furore on Twitter following his reversal of stance on Cathie Wood’s Ark Innovation ETF (NYSE:ARKK), which he had praised earlier for its bullish bets on Tesla Inc. (NASDAQ:TSLA).
What Happened: On his “Mad Money” show on Thursday, Cramer noted that there is an exchange traded fund called the Tuttle Capital Short Innovation ETF (NASDAQ:SARK) that bets against Wood herself.
Calling Ark “the ultimate hedge fund” that owns textbook growth stocks, Cramer noted that the ETF’s year-to-date returns are down 30%.
Cramer’s reversal on Ark and the ETF’s ‘drowning’ sequence on the "Mad Money" show was criticized by some investors on Twitter.
Eric Balchunas, a senior analyst for Bloomberg, noted that Cramer now wants people to short Ark after he called Wood a genius in February last year.
What's awesome about this is Cramer called Cathie a "genius" in Feb 2021. Top ticked one of the greatest runs we've ever seen. Down 50% since. Now he wants you to short it. LOL.
— Eric Balchunas (@EricBalchunas) January 28, 2022
Another Twitter user noted that Cramer’s reversal of stance is not the first time and won’t be the last time either, pointing to how he did a similar U-turn on Elizabeth Holmes, the founder of the now-defunct health technology company Theranos.
Not the first time. Won't be the last time either. https://t.co/7hk72MCHD9
— Yoloking of $TSLAQ (@yoloption) January 28, 2022
Why It Matters: In February last year, Cramer suggested on CNBC that Wood should close off the Ark Funds from new investments and “concentrate on performance.”
However, Wood later told Benzinga it was not possible to close an ETF and she believes Cramer was referring to the mutual fund industry.
Earlier this week, Dogecoin (CRYPTO: DOGE) creator Billy Markus also criticized Cramer over recommending to buy Netflix Inc. (NASDAQ:NFLX) ahead of the crash.
Price Action: ARK Innovation ETF shares closed 3.9% lower in Thursday’s regular trading session at $66.33, but rose almost 0.6% in the after-hours session to $66.70.
Read Next: Cathie Wood Buys $28M Shares In Tesla As Stock Crashes, Ending Months-Long Profit Booking Spree
Photo: Courtesy of CNBC
