Cathie Wood is the founder and chief investment officer at Ark Invest, an asset management company focused on disruptive innovation. Ark manages several thematic index funds built around burgeoning technologies like artificial intelligence (AI), but the firm continued to sell down its position in Nvidia (NASDAQ: NVDA) throughout February.
That may strike readers as strange given that Nvidia graphics processing units are synonymous with AI infrastructure. But the stock has advanced 236% over the past year, so Ark is taking profits and reinvesting capital into other AI companies. For instance, the firm bought shares of Pinterest (NYSE: PINS) throughout February. The social media company now accounts for a little more than 1% of Ark’s $14 billion portfolio.
Here’s what investors should know.
Pinterest failed to impress with its fourth-quarter results
Pinterest reported mixed financial results for the fourth quarter. Global monthly active users (MAUs) increased 11% to 498 million and average revenue per user (ARPU) increased 2% to $2.00. Wall Street analysts anticipated slightly slower MAU growth, but slightly faster ARPU growth.
As a result, Pinterest missed top-line estimates. Revenue increased 12% to $981 million, but Wall Street was looking for $991 million. Despite that shortfall, the company beat bottom-line estimates due to effective expense management. GAAP net income reached $201 million in the fourth quarter, up from $17 million in the prior year.
Pinterest shares declined about 10% following the release of the report, and the stock is still 60% below the record high it reached in early 2021. But the company is executing on a sensible growth strategy by investing in artificial intelligence (AI) and partnering with third-party advertisers. Those moves could create value for patient shareholders in the years ahead.
Pinterest is executing on a sensible growth strategy
Pinterest operates a social media platform that lets users explore and curate visual content to discover new products and ideas. Its monthly user base trails that of Meta Platforms‘ Facebook and…
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