'Cathie Wood Selling Nvidia (NVDA) Shares: Should You Follow Suit?'
Nvidia's earnings report will determine the future of its stock, which has already tripled this year. Investor Cathie Wood sold $1 million worth of NVDA stock ahead of earnings.
Nvidia's upcoming earnings report is highly anticipated, as it will provide insight into the future trajectory of the stock. The company has already seen significant gains this year, with its stock tripling on a year-to-date basis. This surge can be attributed to Nvidia's previous earnings report, which included impressive forward guidance and promising numbers. Investors like Cathie Wood of Ark Invest have profited greatly from these catalysts.
However, it seems that Wood is taking a cautious approach ahead of this earnings report. Reports indicate that she has sold a substantial amount of NVDA stock and instead invested in Zoom Video. This move suggests that Wood may be hedging her bets, considering the substantial rise in Nvidia's stock this year.
Given the sharp increase in Nvidia's stock, it is understandable why investors like Wood would choose to sell into this earnings report. The company's guidance for this quarter played a significant role in its previous gains. If Nvidia falls short or fails to provide strong guidance for the future, the stock could experience a significant decline.
It's important to note that Wood's sale of NVDA shares may simply be a small hedge against a larger position and should not be overemphasized. With billions in assets under management, a $1 million trade is not particularly newsworthy for Wood. However, if this move leads to further selling activity in the future, it could indicate a larger trend. Wood has shown a tendency to react to certain news events, so it's possible that she may sell more if earnings disappoint. We will have to wait and see how this afternoon unfolds.