CNBC.com’s Pippa Stevens brings you the top business news headlines of the day. On today’s program, CNBC’s Kristina Partsinevelos picks up on Cathie Wood’s response to Wall Street, which sparked her ARK innovation fund. In addition, Robinhood records a strong quarter in its first earnings report as a public company, but warns that in-app trading is slowing.
Cathie Wood says stocks are not in a bubble, and believes investors betting against their fund are off base
Cathie Wood of ARK Invest on Thursday defended her innovation-focused strategies after investors bet on their funds.
“I don’t think we’re in a bubble which is what I think a lot of bears think we are,” Wood said Thursday on CNBC’s “Tech Check” magazine. “In a bubble, and I remember the late ’90s, our strategies would have been applauded. Remember the jump of analysts who made estimates one higher than the other, with target prices one higher than the other. We don’t have nothing like that In fact, you see a lot of IPOs or [special purpose acquisition companies] coming out and falling to the ground. We couldn’t be further from a bubble. “
On Monday, regulatory requests detected by CNBC Pro showed that Michael Burry was betting against the Woods ’Ark Innovation ETF through options. Burry’s Scion Asset Management bought 2,355 sales contracts against the red technology ETF during the second quarter and held them until the end of the period. Burry was one of the first investors to call and reap the benefits of the subprime mortgage crisis.
Other hedge funds have also offered short bets and others against the firm’s ETFs.
Robinhood revenue doubled last quarter, but shares fell 8% after app warns trade slows
Robinhood’s revenue doubled in the second quarter to $ 565 million, bolstered by a massive increase in cryptocurrency trading, the stock trading application said on Wednesday in its first earnings report as a public company.
But the shares came in after the company warned that the slowdown in business activity would affect current quarter revenue. Investors may also worry about whether volatile cryptography may continue to provide this tailwind. Robinhood fell more than 8%.
Revenue rose more than 131% in the period, from $ 244 million the previous year, to close to the company’s high forecast limit of $ 546 million to $ 574 million.
According to reports, Amazon plans to open department stores, its latest physical retail experiment
Amazon plans to open department stores that look like department stores, The Wall Street Journal reported.
The newspaper, which cites people familiar with the plans, reported that some of Amazon’s first department stores are expected to be located in California and Ohio. Locations will occupy approximately 30,000 square feet, approximately the size of a Kohl’s or TJ Maxx store, but only approximately one-third the size of a traditional department store.
The move would mark Amazon’s latest experiment with retail physical stores after stealing market share in the headline retail landscape with its e-commerce business. The company has recently surpassed Walmart as the world’s largest retailer outside of China.
The news had an incredible effect on the entire retail industry, particularly affecting the actions of big box rivals. Shares of Target, Bed Bath & Beyond and Best Buy fell about 1.5% in premarket trading, while shares of Walmart fell about 1%.