5 Tech Stocks To Sell Right Now According To Cathie Wood

In this article, we discuss 5 tech stocks to sell according to Cathie Wood. If you want to read our discussion on Cathie Wood’s latest investment plays, head directly to 12 Tech Stocks To Sell Right Now According To Cathie Wood. 

5. Camtek Ltd. (NASDAQ:CAMT)

Number of Hedge Fund Holders: 19

Percentage of Stake Discarded: 33%

Camtek Ltd. (NASDAQ:CAMT) specializes in the development, manufacturing, and sale of inspection and metrology equipment for different segments of the semiconductor industry, including advanced interconnect packaging, memory, image sensors, micro-electro mechanical systems, and radio frequency. In Q4 2023, Camtek Ltd. (NASDAQ:CAMT) was on the list of stocks to sell according to Cathie Wood. She slashed 33% of her stake, holding 33,942 shares worth $2.35 million at the end of December. 

On February 20, Camtek Ltd. (NASDAQ:CAMT) reported a Q4 non-GAAP EPS of $0.57 and a revenue of $88.7 million, outperforming Wall Street estimates by $0.04 and $0.68 million, respectively. 

ACcording to Insider Monkey’s fourth quarter database, 19 hedge funds held stakes in Camtek Ltd. (NASDAQ:CAMT), compared to 18 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the leading stakeholder of the company, with 2 million shares worth $142.2 million. 

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

Percentage of Stake Discarded: 35%

NVIDIA Corporation (NASDAQ:NVDA) ranks 4th on our list of stocks to sell according to Cathie Wood. In Q4 2023, Wood sold 35% of her stake in the tech giant. During the quarter, Cathie Wood’s ARK portfolio had 148,081 shares of NVIDIA worth $73.3 million. On February 21, NVIDIA Corporation (NASDAQ:NVDA) reported a Q4 non-GAAP EPS of $5.16 and a revenue of $22.1 billion, exceeding Wall Street estimates by $0.52 and $1.55 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 173 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the earlier quarter. Rajiv Jain’s GQG Partners is a significant position holder in the company, with 13.90 million shares worth $6.8 billion. 

SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P500).

While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in grey) built on the backs of highly technical companies run by extremely smart people.

Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text)

3. Stratasys Ltd. (NASDAQ:SSYS)

Number of Hedge Fund Holders: 15

Percentage of Stake Discarded: 36%

Stratasys Ltd. (NASDAQ:SSYS) specializes in providing polymer-based 3D printing solutions for different applications, including manufacturing, tooling, and rapid prototyping. In the December quarter, Cathie Wood slashed 36% of her Stratasys Ltd. (NASDAQ:SSYS) stake, holding 639,133 shares worth $9.12 million. 

On December 24, 2023, Nano Dimension Ltd. (NASDAQ:NNDM) submitted an all-cash proposal to acquire Stratasys Ltd. (NASDAQ:SSYS) for $16.50 per share. This preliminary proposal covers all remaining Stratasys shares that Nano Dimension does not already own, and the offer is open to potential increases pending the completion of due diligence. Nano Dimension currently holds a 14% stake in Stratasys, making it the largest shareholder. This move follows Nano Dimension’s withdrawal of a previous $25 per share partial tender offer for Stratasys in late July 2023, which had faced multiple rejections from the 3D printer maker.

According to Insider Monkey’s fourth quarter database, Stratasys Ltd. (NASDAQ:SSYS) was part of 15 hedge fund portfolios, compared to 19 in the earlier quarter. David Rosen’s Rubric Capital Management is the leading stakeholder of the company, with 4.25 million shares worth $60.7 million. 

2. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 51

Percentage of Stake Discarded: 84%

Cathie Wood sold 84% of her Sea Limited (NYSE:SE) shares in the fourth quarter of 2023. At the end of December, ARK owned only 3,681 shares of the company valued at $149,081. Sea Limited (NYSE:SE) operates in the digital entertainment, e-commerce, and digital financial services sectors worldwide. 

On February 1, Citi upgraded Sea Limited (NYSE:SE) based on the belief that losses for its Shopee e-commerce unit may improve soon. The investment firm cited uncertainty in the Southeast Asia e-commerce landscape, noting potential impacts from TikTok shopping and its integration into the Toko app ahead of the Hari Raya promotional campaign. Analyst Alicia Yap sees an inflection point in the coming months if Shopee maintains its leading position through strategic spending, coupled with a gradually improving monetization rate and reduced EBITDA losses. As a result, Citi raised its rating on Sea Limited (NYSE:SE) to Buy from Neutral and increased the price target on the shares to $50 from $44.

According to Insider Monkey’s fourth quarter database, 51 hedge funds were long Sea Limited (NYSE:SE), compared to 55 funds in the earlier quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 14.3 million shares worth $580 million. 

Artisan Developing World Fund stated the following regarding Sea Limited (NYSE:SE) in its fourth quarter 2023 investor letter:

“Bottom contributors to performance for the quarter included Southeast Asian e-commerce leader Sea Limited (NYSE:SE). Sea was negatively impacted by rising investment spend, and TikTok’s announcement of a partnership with Tokopedia which resulted in the relaunch of TikTok Shop in Indonesia.”

1. Satixfy Communications Ltd. (NYSE:SATX)

Number of Hedge Fund Holders: 3

Percentage of Stake Discarded: 100%

Satixfy Communications Ltd. (NYSE:SATX) specializes in the development of comprehensive next-generation satellite communications systems. The company provides a range of products, including modems with software-defined radio, fully electronically steered multi-beam antennas, and compact aperture terminals. Satixfy Communications Ltd. (NYSE:SATX) ranks 1st on the list of stocks to sell according to Cathie Wood. She discarded 100% of her stake in the company during the fourth quarter of 2023. 

On February 8, Satixfy Communications Ltd. (NYSE:SATX) announced that the NYSE American has accepted the company’s plan to regain compliance with listing standards. The plan outlines initiatives for compliance, and the NYSE American has granted a plan period until May 30, 2025, for targeted completion. 

According to Insider Monkey’s fourth quarter database, 3 hedge funds held stakes in Satixfy Communications Ltd. (NYSE:SATX), compared to 5 funds in the last quarter. 

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