Out with the old. In with the new. Some investors might think that's Cathie Wood's strategy these days. And they'd have a point.

Wood's Ark Invest exchange-traded funds (ETFs) have been trimming their positions in several stocks that Wood once championed. In particular, she is selling two artificial intelligence (AI) stocks. Should you sell them too?

1. Twilio

You might be surprised to see Twilio (TWLO 1.47%) as one of the AI stocks that Wood is selling. After all, it was only a few months ago that she named Twilio as one of her top AI picks to buy. Ark Invest's report in August 2023 proclaimed that Twilio was part of "AI's sleeper wave" and "should benefit significantly from the AI opportunity."

So far this year, though, Wood has steadily sold Twilio shares. Her flagship Ark Innovation ETF has completed more than 20 sale transactions of the AI stock since late January 2024. Ark Next Generation Internet ETF isn't too far behind, selling Twilio nearly 20 times. Ark Fintech Innovation ETF has sold Twilio shares at least 10 times this year.

To be sure, Wood hasn't completely thrown in the towel on Twilio. Ark Fintech Innovation ETF still has more than 3% of its portfolio invested in the communications platform provider. A little over 1% of Ark Innovation ETF's portfolio is invested in Twilio. Ark Next Generation Internet ETF has a little under 1% of its portfolio in the stock. However, Wood isn't quite as enamored with Twilio as she once was.

2. UiPath

UiPath (PATH 0.26%) was another of Wood's favorite AI stocks last year. Like Twilio, UiPath was seen by Ark Invest as one of the up-and-coming AI players that was preferable to the mega-cap "Magnificent Seven" stocks that delivered sizzling gains in 2023. The fund manager's August 2023 report listed UiPath first in a discussion of its "high-conviction" AI picks.

That was then. Four Ark Invest ETFs have sold UiPath shares on at least nine occasions this year: Ark Innovation ETF, Ark Next Generation Internet ETF, Ark Autonomous Technology & Robotics ETF, and Ark Space Exploration & Internet ETF. Ark Fintech Innovation ETF and Ark Innovation ETF have sold UiPath shares two and four times, respectively, so far in 2024.

Again, Wood hasn't given up entirely on UiPath. The stock still ranks as the second-largest position in Ark Autonomous Technology & Robotics ETF. It's the fifth-largest position for Ark Innovation ETF and Ark Fintech Innovation ETF. UiPath is also among the top 10 holdings in Ark Next Generation Internet ETF and Ark Space Exploration & Internet ETF.

Why is Wood selling Twilio and UiPath?

Wood hasn't commented publicly on her reasons for selling shares of Twilio and UiPath. She could simply be taking some profits off the table with UiPath, although that's likely not the case with Twilio since it hasn't performed as well.

Twilio faces challenges with its Segment business, which markets a customer data platform. Segment generates around 7% of the company's total revenue. Twilio recently named Thomas Wyatt as president of Segment to hopefully turn things around.

Ark Invest could be unhappy with Twilio's weak growth. The company reported fourth-quarter year-over-year revenue growth of only 5%. It remains unprofitable, posting a loss of more than $365 million based on generally accepted accounting principles (GAAP).

UiPath, on the other hand, appears to be performing well. It delivered record revenue of $405 million in Q4, up 31% year over year. The company also achieved its first quarter of GAAP profitability since its IPO in 2021.

Should you sell Twilio and UiPath too?

You shouldn't make your buy and sell decisions based on what a famous investor is doing. Wood's priorities and objectives could be quite different from yours.

I think that both Twilio and UiPath could be big winners over the long term. My favorite of these two stocks is UiPath. As we've already seen, it's growing at a much faster rate than Twilio. I like the future growth prospects for the company's enterprise automation platform. There's a reason Ark Invest still holds larger positions in UiPath than in Twilio: It's the better AI stock right now.