In the first part of a series of interviews published by Real Vision on Monday, Ark founder Cathy Wood focused on Wall Street's shortcomings, saying Wall Street needed more specific technical analysis, citing the example of Tesla.
Wood pointed out that she expects the electric car giant's share price to reach $3000 by 2025, which is considered "crazy" given that the company's share price is currently less than $700.
"We think the reason why Tesla's valuation is so inefficient is that analysts are short-sighted and the wrong analysts are tracking it," Wood said. " Tesla is a diversified technology company, but it is studied by Wall Street auto analysts, she explained.
"Tesla is a technology company, but it's not just a technology company," said Wood, referring to Tesla's energy storage, robotics, artificial intelligence and software as a service (SaaS) businesses. "so we have three analysts building Tesla models," she said. "
The market capitalization of the public stock market, which focuses on transformational innovation, was about $7 trillion in 2019 and doubled to $14 trillion in 2020, Wood said. "We believe that in the next five to 10 years, this figure will reach more than $75 trillion, which is likely to exceed all the gains in the stock market, because the flip side of destructive innovation is creative destruction, so there are more and more value traps in traditional benchmarks because these traps will be destroyed or destroyed."
"it's important to get innovation right," says Mr Wood. "I don't think traditional research departments can do that right now."
Edit / charlie