Jim Cramer's 'Drowning' Sequence With Cathie Wood's Ark Innovation ETF Drives Twitter Crazy

Jim Cramer's 'Drowning' Sequence With Cathie Wood's Ark Innovation ETF Drives Twitter Crazy

CNBC host Jim Cramer created a furore on Twitter following his reversal of stance on Cathie Wood’s Ark Innovation ETF ARKK, which he had praised earlier for its bullish bets on Tesla Inc. TSLA.

What Happened: On his “Mad Money” show on Thursday, Cramer noted that there is an exchange traded fund called the Tuttle Capital Short Innovation ETF SARK that bets against Wood herself.

Calling Ark “the ultimate hedge fund” that owns textbook growth stocks, Cramer noted that the ETF’s year-to-date returns are down 30%.

Cramer’s reversal on Ark and the ETF’s ‘drowning’ sequence on the "Mad Money" show was criticized by some investors on Twitter.

Eric Balchunas, a senior analyst for Bloomberg, noted that Cramer now wants people to short Ark after he called Wood a genius in February last year.

Another Twitter user noted that Cramer’s reversal of stance is not the first time and won’t be the last time either, pointing to how he did a similar U-turn on Elizabeth Holmes, the founder of the now-defunct health technology company Theranos.

Why It Matters: In February last year, Cramer suggested on CNBC that Wood should close off the Ark Funds from new investments and “concentrate on performance.”

However, Wood later told Benzinga it was not possible to close an ETF and she believes Cramer was referring to the mutual fund industry.

Earlier this week, Dogecoin DOGE/USD creator Billy Markus also criticized Cramer over recommending to buy Netflix Inc. NFLX ahead of the crash.

Price Action: ARK Innovation ETF shares closed 3.9% lower in Thursday’s regular trading session at $66.33, but rose almost 0.6% in the after-hours session to $66.70.

Read Next: Cathie Wood Buys $28M Shares In Tesla As Stock Crashes, Ending Months-Long Profit Booking Spree

Photo: Courtesy of CNBC

Posted In: ARK InvestCathie WoodGrowth stocksJim CramerNews