ARK Invest CEO/CIO, Catherine Wood sits down with CNBC Squawk Box to discuss FANG stocks: FacebookFB, AppleAAPL, NetflixNFLX, and GoogleGOOG. She explains that these large-cap companies are leading the charge on artificial intelligence and machine learning as a service, which will sustain the current cycle in which the winner takes most.
“I think AmazonAMZN has taught a lot of people a lesson, and that is: you have a big idea, you have to tell investors about it. Invest heavily against the opportunity and you’ll be rewarded for it.”
“When Amazon launched web services in ’06, we knew they were onto something big. Jeff Bezos said Amazon Web Services is going to be as big as retail. What he didn’t tell you is it’s going to be five to ten times more profitable. Those who were watching the cloud and understood that, understood what a huge call option that is.”
“Google’s robot division really hasn’t taken off, except if you think about autonomous vehicles: those are robots. We think that’s a $500 billion dollar opportunity and a winner takes most in a networking effect kind of way… We think the winner will be a technology company possibly paired with a traditional auto manufacturer, but yes the technology companies are in the lead here.”
All statements made in this article are direct quotes from the interview with Catherine D. Wood. Click here to view the full broadcast.
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