Deere & Co.’s shares plummeted 7.5% on Thursday amid worsening trade tensions and a sharp decline in profitability, yet star investor Cathie Wood seized the opportunity to make a $33.3 million bet on the agricultural machinery giant. The company reported a 50% drop in operating profit across key segments, with net income falling to $1.29 billion from $1.73 billion year-over-year. Rising tariffs, projected to cost over $500 million by 2025, compounded the pressure from weak crop prices dampening farmer demand. Despite the bleak outlook, Wood’s flagship ETF acquired 64,789 Deere shares—its largest single-day purchase—signaling confidence in the stock’s long-term potential, particularly in precision farming and autonomous technology.
Contradictory Signals Divide Investors
While institutional and retail investors fled, Wood’s move highlights a stark divergence in market sentiment. Analysts note Deere narrowly surpassed earnings estimates ($4.75/share vs. $4.63 expected), but slashed its annual net profit forecast to $5.25 billion, reflecting persistent headwinds. The stock’s slump mirrored broader losses among large-cap industrials, yet Wood’s focus on disruptive agri-tech suggests a calculated gamble on Deere’s digital transformation. Whether this bet pays off hinges on the sector’s ability to weather trade wars and demand fluctuations.
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