‘Cathie Wood is the new Jim Cramer,' joke netizens as ARK Invest boss dumps Nvidia stock just before $560-bn surge

Tech company Nvidia’s stock surged 30 per cent on Thursday after the company announced its forecast of $11 billion in revenue for July ending quarter. This would be approximately 50 per cent more than the Wall Street estimates of $7 billion.

This sudden surge in price of the chip-maker giant, led to a gain of $199 billion in its market cap in a matter of few hours, taking its market cap to $961.35 billion.

Netizens couldn't stop talking about Nvidia, not just because of an unprecedented stock price surge, but also because of ARK Investment’s CEO, Cathie Woods.

Till October, Cathie Wood's ARK Investment owned 8 lakh shares in Nvidia. The ace investor bought these shares on August 8, 2022 when the price of the stock was $182. On November 9, 2023, she sold all the Nvidia stock in her portfolio at $137, at a loss of $45 a share, resulting in nearly $200 million loss.

Since then, Nvidia’s stock has surged almost 160 per cent year-to-date from its lows and gained $560 billion in market cap in 2023. The current stock price stands at $394. Cathie Woods sold her entire portfolio of Nvidia stocks in November, right before it began its monstrous surge

People on Twitter have started calling Cathie Wood as the new Jim Cramer, a CNBC (US) anchor and stock analyst who runs a show called ‘Mad Money’. He is famous for giving ‘buy’ calls on stocks which eventually crash few days after his recommendation.

During the Financial Crisis of 2008, Cramer suggested people to buy the stocks of the American Bank Bear Sterns at $80, which later in that week filled for bankruptcy. Similar incident happened during the Silicon Valley Bank collapse, when Cramer suggested that bank is fine when its share traded at $320. Next week, the bank collapsed. Even in the Gamestop saga, he asked people to sell the company’s stock at $7, which later massively jumped to more than $400 a share.

Investors have already developed a strategy around this to capitalise by simply inverting every recommendation that Cramer gives. If he gives a ‘buy’ call, investors ‘sell’, if he gives a ‘sell’ call, people ‘buy’. Some companies have even started a few ETFs that are named ‘Inverse Cramer’, where you can easily bet against Cramer’s stock recommendation. Some of the Inverse Cramer ETF’s have also outperformed the picks of CNBC host. And now, netizens say 'Inverse Cathie' is the new 'Inverse Cramer'.

Netizens noticed a similar trend in the stock picking of Cathie Wood. Whichever stock she unloads from her portfolio, ends up having a massive rally later. For example, Nvidia, which has more than doubled since she got rid the chip-maker's stocks.

One Twitter user said “Cathie Woods in Jim Cramer 2.0”.

Another user shared a hilarious meme on the situation of Jim Cramer and Cathie Woods.

“Cathie Wood is fast closing in on Jim Cramer accuracy levels,” another user wrote.

Nvidia stock has given over 11,000 per cent return in last 10 years taking the crown of a multi-bagger stock. Nvidia, in 2013, used to trade around $3.

Wood defended her decision saying the computer-chip industry’s boom-bust cycle poses risks.

“As far as Nvidia goes, there are a few reasons we take some pause,” Wood said in an interview on Bloomberg TV. She said, “When I hear shortages about GPUs or anything, I begin to think about the cyclicality of a group.”

ARKK has climbed 25% so far this year, outpacing the S&P 500’s 9.4% gain.

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