⚠️ WARNING: Jim Cramer’s HUGE Mistake on Cathie Wood’s Stocks

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you pour the sark over the ark and you
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bet that they all drown and no one gets
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out
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alive
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it's a strange time for growth stocks
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that cnbc clip is from just six days ago
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and in true jim cramer fashion rk was up
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around 15 percent after he uh whatever
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that was financial entertainers make
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their money in entertainment not finance
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for example jim cramer's show is a sales
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funnel for memberships to cnbc's
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investing club financial entertainment
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isn't bad that mad money episode was
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pretty exciting to watch but as an
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investor you should always ask yourself
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this question am i watching
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entertainment right now or am i using
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this information to make an investment
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decision in this episode i'm going to
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show you the difference between
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financial entertainment and information
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your time is valuable so let's get right
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into it starting with the entertainment
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side of things here's a quick super cut
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of cnbc's recent coverage of arkhanvest
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on their january 27th episode of mad
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money do me a favor and pay attention to
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it like it was financial information
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like your portfolio depended on it you
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know what i know that people hate me
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when i just say stay the course
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or stay put
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during a correction nobody wants your
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state of course they want action yeah
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they want an excuse to sell everything
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and then circle back at a lower level
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the right level i can't play them
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however if you are the more conceptual
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names the formerly huge winners betting
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that they be the next tesla or the next
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amazon or apple these are typically
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money losing companies that stocks trade
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on basis of sales not earnings because
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there are no earnings now some of them
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do make money but they've gone out of
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style the wall street fashion show
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because they're still revenue growth
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stories and i don't know when they're
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going to come back you know it's really
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a double whammy the twin matadors of
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inflation and pending rate hikes either
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one could behead these stocks but both
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as overkill now this market's been down
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for a long time i use the s p
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proprietary oscillator to monitor the
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selling pressure i go over it at 10 20
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each morning uh in my morning meeting
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with jeff marks you got to watch this
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this is remember the club you can't see
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it otherwise and it's going to be
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stunning when i show it tomorrow and we
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talk about it you should not be betting
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on these stocks in fact you actually
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might want to
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bet against them
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how do you do it ladies and gentlemen
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let me introduce you to the ultimate
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hedge let me introduce you to the ark
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more specifically the ark innovation etf
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which is run by kathy wood the best
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money manager of 2020 albeit not 2021
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and probably not 2022. now wood owns
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this is the ark okay
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wood owns a ton of textbook growth names
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a tesla teledoc zoom video roku coinbase
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it's kind of a curious amalgam of
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animals pandemic plays cryptocurrency
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enablers medical health breakthrough
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companies cost savers in a streaming
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music service
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woods favorites are often profitable
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their stocks have only recently begun to
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lose you money because their momentum
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plays that now have lost their momentum
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i have a brutal solution for you it's
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called the tunnel capital short
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innovation etf its symbol is sarc
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s-a-r-k and it literally shorts whatever
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kathy goes along it's
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frankly too cruel even for me but man i
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want to think of the sark etf as the
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scotch that happened to my parents
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choice
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sark as in cuddy sark yep you can buy
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some sarc and hedge your position if
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you're worried this correction will
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continue then stay the course in the
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stocks that are holding up and then you
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use this thing to bet against the growth
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stocks that are the center of the blast
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radius the ark so here's the bottom line
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you pour the sark over the ark and you
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bet that they all drown and no one gets
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out
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alive
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let's take some costs the clear action
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to take here is to bet against growth
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stocks in general and kathy woods stock
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picks specifically by buying tuttle
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capital's short innovation etf ticker
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symbol s-a-r-k what are the biggest
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holdings that sarc is betting against
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wood owns a ton of textbook growth names
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a tesla teledoc zoom video
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roku coinbase got it so here's an
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article that cnbc's mad money released
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on february 1st just three market days
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later quote jim cramer says he likes
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most of the ark innovation etf's top
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holdings after the growth stock meltdown
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cnbc's jim cramer said tuesday that he
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likes the setup in most of the largest
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positions in kathy wood's arc innovation
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etf rk tesla teledoc zoom video roku and
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coinbase as well as why they're worthy
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considerations for your money and
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honestly all five of these are pretty
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good super quick takes tesla doesn't
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have meaningful competition teledoc has
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a huge network and is down 70 percent
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zoom is permanently embedding itself in
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the enterprise and it's surprising that
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roku has fallen 60 percent because it's
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a lucrative business with a great
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balance sheet and a clear path to
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international expansion coinbase is the
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only decent option for a publicly traded
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proxy for crypto and it's also down
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almost 50 percent from all-time highs
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this looks like financial information
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but it's the exact opposite of what jim
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cramer said just three market days
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earlier and that's for a couple
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different reasons first off jim cramer
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is a trader not an investor that's not a
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bad thing but it does mean that he
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thinks about returns on a much shorter
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time horizon he thinks in terms of weeks
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and quarters not years or decades second
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jim cramer is an entertainer financial
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entertainers have no need to be
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consistent they make money by ratings
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and views and selling courses and
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memberships and other products and
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services like access to their inner
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circle they're not pitching you
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investments they're pitching you
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themselves keep watching me keep buying
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from me learn to think like me here's
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jim cramer's pitch now this market's
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been down for a long time i use the s p
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proprietary oscillator to monitor the
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selling pressure i go over it at 10 20
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each morning
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in my morning meeting with jeff marks
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you got to watch this this is remember
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the club you can't see it otherwise and
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it's going to be stunning when i show it
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tomorrow and we talk about it that's it
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those 15 seconds is why that whole clip
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existed it's got nothing in common with
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the article that jimmy put out just
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three days later except
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oh what's this sign up now for the cnbc
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investing club to follow jim cramer's
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every move in the market if you're
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wondering whether the investing content
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you watch is information or
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entertainment just look at which parts
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are consistent if it's the pitch to join
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a club or buy a product chances are it's
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entertainment if it's the actual content
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like somebody's ideas about the future
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their framework or their investment
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thesis in it chances are it's
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information and this past month the
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information itself has been pretty
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exciting
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so let's get into it starting with kathy
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wood's combined positions sitting right
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at the top are the stocks that jim
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cramer wants you to buy and or short
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tesla teledoc coinbase zoom and roku as
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i've been consistently saying for months
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now kathy wood has been slowly selling
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tesla and buying teledoc in their funds
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arc invest currently holds over 14
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million shares of teledoc valued at
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almost 2.2 billion dollars today even at
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its currently low valuation making it
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their second biggest position overall
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only after tesla in fact if you look at
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the changes in their top five combined
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positions their share count and teledoc
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increased by a higher percentage than
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tesla square roku and shopify put
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together over the last 90 days but those
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14 million shares actually tell me
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something else the title of that episode
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is kathy wood has a new favorite and
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arkhamvest buys it over tesla stock and
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i get it it's not earning me any brownie
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points with the tesla or the investing
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community but it's what's really
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happening so i feel i have an obligation
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to tell you about it the first time i
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noticed this pattern was back in may of
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2021 so i made that deep dive episode on
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teledoc and have been covering
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arkhanvas's position in it pretty
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closely ever since now eight months
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later my position on teledoc has not
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changed good or bad i think a lot of
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kathy wood's fame comes from
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arkhanvest's early call on tesla and
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many people feel she rode tesla's
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performance all the way to the top
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through 2020. what the market is missing
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is that arc invest's best performing
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fund in 2020 was actually arcg arc
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invests fund themed around the genomic
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revolution arcg brk and arcw by double
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digit percentage points in fact my sixth
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video ever was about the revolution
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going on in the gene editing space and
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why arcgi was arc invest's best
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performing fund even though it doesn't
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hold tesla arc invest's best performing
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stock i'm not trying to toot my own horn
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here okay maybe a little i'm trying to
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show you what long-term data-driven
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self-consistent informational content
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looks like compared to financial
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entertainment my stance on teledoc has
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not changed even though it dropped over
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70 percent since i started covering it
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so if you're interested in what i think
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the market is missing on teledoc their
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acquisition of lavongo and arc invests
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research on the two check out that deep
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dive i'll leave it in the top right hand
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corner of your screen right now and in
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the description below as well so here's
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my question to investors can we
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logically believe that arkhamvest got
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lucky with tesla in 2020 when their best
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performing fund that year didn't hold it
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if you believe that call on tesla was
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thanks to research and not luck that
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same research machine is now holding
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teledoc stock at the same weight as
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tesla let's take a look at arc investors
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trading data over the last month to see
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what else their research has caused them
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to buy and sell more recently this is a
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table of arc invests combined holdings
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each row is one company the rows are
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ordered by the size of kathy wood's
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position in that company and each
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position is colored by its change in
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size since january relative to the
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change in arc invests assets under
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management in january arkhamvest's
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assets under management fell by 6.8
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billion dollars or 22 percent so each
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position is blue if it fell by more than
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22 percent and green if it shrank by
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less than 22 percent or even if it grew
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here we are again arc invest sold 9.6
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percent of their tesla shares and
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tesla's price fell over 20 percent so
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arc invest is holding around 30 less
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money in tesla than they were at the
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start of january on the other hand kathy
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wood bought a little more teledoc
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coinbase zoom and a lot more roku as
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these stocks went down by double digits
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it looks like jim cramer agrees and or
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disagrees with kathy wood's top choices
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depending on which minute you ask him if
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we sort this table by change in share
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count instead we can see which stocks
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cathy would bought the most of as all
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growth stocks continue to slide i'm
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going to focus on only the top 50
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holdings by rank for now since those
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should be the ones that arc and best has
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the highest conviction in so kathy would
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heavily bought the dip on c limited
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roblox ginkgo bioworks robin hood
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intelia therapeutics block and roku she
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also bought the dip a little bit on
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coinbase draftkings twilio and zoom if
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we flip this table we can see what
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stocks arch invest has been selling out
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of we can see that they completely sold
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out of netflix pin duo duo and 10 cent
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over the last month their share prices
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didn't actually go down by 100 percent
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they're just not an arkhamvest dataset
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anymore after they got sold so all of my
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code fills this in with zeros arc and
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best sold almost all of their shares in
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taquito pharmaceuticals snapchat skills
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and docusign resulting in these huge
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changes in rank almost every stock on
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this part of the list is down by double
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digits and arc invest decided to sell a
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big chunk of each instead of buying the
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dip resulting in these big drops in
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overall positions however none of these
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stocks were too high ranking to begin
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with which makes sense because kathy
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wood drops her lowest conviction stocks
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for the highest conviction ones when
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everything goes on sale since i did a
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deep dive on skills in the past i went
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back to see what caused this massive
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change in conviction the two things that
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i found at a glance were that skills
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recently raised 300 million dollars by
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selling senior secured notes at a 10.25
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percent discount which is like taking a
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loan at over an 11 rate what do they
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need that money so bad for that they're
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willing to borrow it at such a high cost
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what if they need to borrow even more
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money as interest rates rise as they're
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literally about to the other issue
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appears to be how skills accounts for
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marketing spend and reductions in
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revenue under gaap rules gaap stands for
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generally accepted accounting principles
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and it's how every publicly traded
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company reports their finances basically
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skills calls incentives for new players
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reductions in revenue skills calls bonus
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cash offers and other incentives for
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existing players sales and marketing
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costs i won't lie to you i don't know
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every gap rule out there but i do know
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that when you're a publicly traded
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company messing around with accounting
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never looks good in fairness if you're
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interested in seeing skill side of this
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accounting issue you can check out the
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end of their latest investor
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presentation where they go over their
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accounting for end user incentives with
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detailed examples you should decide for
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yourself if that helps their cause or
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not i'll keep digging but honestly
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borrowing money at an incredibly high
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rate and raising questions about
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accounting are probably enough to make
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kathy wood look elsewhere the other sale
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i want to cover is palantir because i've
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been getting a lot of tweets and
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comments about it a lot first off
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palantir is still a top 20 position at
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arc invest it actually went up one rank
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over january kathy wood net sold a
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whopping six percent of her shares the
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word net is important here here's how
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that sale broke down fund by fund she
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sold over ninety percent of the
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pallentier shares in arcg and arc f and
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about 23 of the shares in rw she
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actually added eight percent more shares
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of palantir in rq fourteen percent more
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in arc x and six point three percent
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more paladier shares to rk
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you know the highest conviction flagship
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innovation fund the one that jim cramer
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likes and or wants to drown wow that
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really never gets less weird what can
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palantir getting sold out of three funds
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and getting bought in the other three
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tell us about arkhanvest's conviction in
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my opinion this means that as every
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genomic and fintech stock goes down in
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price there are better or at least more
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pure play options in these spaces than
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pound here pounds here getting sold out
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of arc w is also pretty interesting to
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me since i figured that's a fund that
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palantir would fit pretty strongly into
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that doesn't make pound here a bad stock
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it just means that it got traded out for
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companies that are considered more pure
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play in those spaces the biggest
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increases in arc w by shear count were
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in c limited ticker symbol se and
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cloudflare ticker symbol and et both of
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which are also pretty big positions in
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my own portfolio and guess what palantir
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stock price fell by less than c limiteds
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and cloud flares which could have
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something to do with it seeing pounds
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here get more shares in rk rq and arc x
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tells me that kathy woods still has high
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conviction in the company in general and
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that it's making meaningful impacts in
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the robotics and space areas
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specifically that makes at least a
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little sense to me since kathy wood
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often says that palette here is going to
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keep pushing computing out to the edge
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volunteer has
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the opportunity
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to usurp a lot of aws azure
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google compute
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over time it is pushing uh artificial
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intelligence out to the edge that edge
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means devices like cars and robots and
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drones and satellites and all the other
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cool technologies that balance your
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solutions and platforms can get deployed
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on and don't necessarily touch the cloud
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we'll see if that theory ends up shaking
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out but that's my current guess if you
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want to share your thoughts on palantir
15:31
or any other growth stock or
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cryptocurrency for that matter you're
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welcome to join my absolutely free 4500
15:37
member discord community there are
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channels for everything from cloud
15:41
computing and electric vehicles to
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genomics and space exploration if you're
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interested in that i'll leave an invite
15:46
link for you in the description below
15:49
and of course if you want access to all
15:51
the data dashboards that i just
15:52
showcased throughout this episode so
15:54
that you can come to your own
15:55
conclusions without waiting for me to
15:57
make a video about the stocks you care
15:58
about consider supporting the channel as
16:01
a patron on patreon or channel member
16:03
right here on youtube i update these
16:05
data dashboards myself every day by hand
16:08
see there's my version of the jim cramer
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cool kids club or whatever he's selling
16:12
these days hopefully this episode gave
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you some food for thought on
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entertainment versus information with
16:17
what i think are good examples of each
16:20
there's nothing wrong with entertainment
16:21
on cnbc or on youtube and not all
16:25
information is useful information but
16:27
there is a real danger in mistaking one
16:29
for the other and i encourage you to
16:30
really think about the consistency of
16:32
the investors you choose to follow so
16:35
stay long stay strong and thanks for
16:37
watching until next time this is ticker
16:39
symbol you my name is alex reminding you
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that the best investment you can make
16:44
is in you