Cathie Wood Is Loading Up On These 12 Stocks – Yahoo Finance

In this piece, we will take a look at the top twelve stocks that are on Cathie Wood’s radar. For more stocks, head on over to Cathie Wood Is Loading Up On These 5 Stocks.
If there’s one thing that can be said for certain in today’s highly volatile environment, it’s that 2022 has not been a good year for Cathie Wood. Ms. Wood, who heads the hedge fund Ark Investment Management, is one of the most dynamic managers you’re likely to come across. Her bets focus on the highest growth stocks in the industry, which are often those companies that are disrupting the industries they are in. Whether it’s 3D printing, biotechnology, or electric cars, Ms. Wood is right at the front of identifying firms that she believes are truly poised to explode.
Naturally, this aggressive approach, which can very well be categorized as being disruptive to the hedge fund world as well, has come under criticism from more conservative investors who believe that high risk companies should be balanced out with stable players. Ms. Wood is aware of this criticism. In a research paper that she wrote at the start of this month, Cathie Wood used quantitative data to hit back at the critics.
She criticized the approach of simply using the operating income (EBITDA) to value growth companies that are investing heavily in research and development. The hedge fund boss explained that purely focusing on EBITDA — just 27.8% of her Innovation ETF’s holdings are EBITDA positive — is not a reliable indicator of performance since research and development ends up adding to the long term value of a firm. Ms. Wood added that for startups and early stage companies, deferred revenue, which is revenue that it will earn beyond one accounting period, is also a source of “validation” and is more important for valuation purposes than it would be if a mature company was being analyzed. To bolster her claim of R&D costs being a relevant valuation metric for Ark’s investments, she quoted that for the firms that her fund has invested in, these costs are 28.6% of total revenues as opposed to 12% for the NASDAQ 100 index. Should these and some other costs be removed from the operating income, then, as opposed to the 27.8% positive EBITDA percentage shared above, the percentage of firms in the Ark Innovation fund that are profitable jumps to 84.9%.
Finally, she concluded her criticism by sharing an example of Tesla, Inc. (NASDAQ:TSLA). Ms. Wood is one of Tesla’s biggest investors, and she has a whopping $1,530 price target for the company whose shares have taken a beating on the stock market this year due to what some believe is an effect of Mr. Elon Musk’s Twitter tryst, with Musk himself countering by pointing out that a higher benchmark interest rate leaves little incentive for people to invest in risky stocks when they have the comfort of bonds instead. Ms. Wood shares that while Tesla’s EBITDA based profitability was negative as early as 2016, it was actually positive based on her adjusted EBITDA metrics and ended up being positive in 2015, five years before the company entered the S&P 500 index.
Ark Investment’s portfolio is one of the largest in the industry right now, and by the end of this year’s third quarter, it was worth a whopping $14 billion. Unlike some other hedge funds, it also shares daily trading data with anyone who signs up for the service on its website, with details of the shares that it has bought as part of its managed funds sent out regularly a little over three hours after markets have closed. The hedge fund has six different funds. These are the ARK Space Exploration & Innovation ETF, ARK Fintech Innovation ETF, ARK Next Generation Internet ETF, ARK Genomic Revolution ETF, ARK Autonomous Tech. & Robotics ETF, and the flagship ARK Innovation ETF. The top additions to Cathie Wood’s investment portfolio are Coinbase Global, Inc. (NASDAQ:COIN), Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), and Roblox Corporation (NYSE:RBLX).
Cathie Wood of ARK Investment Management
Our Methodology
We used Ark’s daily trading data for December 22 and December 21 to sift out the largest number of shares purchased and the companies that they represented. The shares bought earlier are listed first, and the firms are ranked through the number of shares bought by Ark.
Number of Shares Bought By Ark Investment on December 21, 2022: 486
Zoom Video Communications, Inc. (NASDAQ:ZM) is a video communications platform provider that enables companies and everyday users to communicate with their relatives, workers, and others all over the globe from the comfort of their homes. It is headquartered in San Jose, California, the United States.
Cathie Wood bought 486 Zoom Video Communications, Inc. (NASDAQ:ZM) shares on December 21, 2022, adding to her massive $801 million stake which made her the company’s largest investor in Q3 2022. During the same time period, 50 out of the 920 hedge funds polled by Insider Monkey had invested in Zoom Video Communications, Inc. (NASDAQ:ZM).
Along with Coinbase Global, Inc. (NASDAQ:COIN), Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), and Roblox Corporation (NYSE:RBLX), Zoom Video Communications, Inc. (NASDAQ:ZM) is one company that’s on Cathie Wood’s keen stock picking radar.
Number of Shares Bought By Ark Investments on December 21, 2022: 8,004
Roku, Inc. (NASDAQ:ROKU) is an American entertainment platform provider that is headquartered in San Jose, California. It provides a streaming platform that lets users watch television shows, movies, and other channels. The firm also sells hardware products such as media players. It is headquartered in San Jose, California.
As has been the case with other high growth, high technology stocks, Roku, Inc. (NASDAQ:ROKU)’s shares have also taken a beating on the stock market this year. They are down a painful 82% year to date. It looks like Cathie Wood thinks it’s the perfect buying opportunity. Data shared by her firm revealed that it had bought 8,004 shares of the firm on December 21, 2022, as part of its Ark Innovation ETF.
Insider Monkey’s Q3 2022 data of 920 hedge funds revealed that 33 had held a stake in Roku, Inc. (NASDAQ:ROKU).
Roku, Inc. (NASDAQ:ROKU)’s largest investor in our database is also Catherine D. Wood’s ARK Investment Management which owns 11.9 million shares that are worth $672 million.
Saga Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“The Portfolio first bought Roku in Q3’20. It was a company we followed closely given our investment in The Trade Desk and its importance in connected television (CTV). Roku continued to impressively grow its CTV market share and it took some extra work to understand the underlying dynamics causing Roku’s success. I think there is some misunderstanding surrounding the connected television landscape. Since I haven’t written extensively on the topic in past letters, I thought it would be helpful to provide a little more background on the underlying dynamics of the space below…” (Click here to see the full text)
Number of Shares Bought By Ark Investments on December 21, 2022: 1,932
Block, Inc. (NYSE:SQ) is a payments platform provider that sells both hardware and software. Its hardware products let merchants accept payments from plastic cards, through both chip and near field verification. Additionally, its software platform enables users to make payments.
When trading ended on December 21, 2022, Ark Investment had bought 1,932 Block, Inc. (NYSE:SQ) shares as part of its ARK Innovation ETF. It is already the company’s largest investor as it owns 9.1 million shares that are worth $505 million as of Q3 2022 end. During the same quarter, 75 out of the 920 hedge funds polled by Insider Monkey had also invested in Block, Inc. (NYSE:SQ).
Baron Funds’ Q2 2022 investor letter mentioned the company and outlined that:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
Number of Shares Bought By Ark Investments on December 21, 2022: 9,952
Tesla, Inc. (NASDAQ:TSLA) is one of the world’s largest manufacturers of electric vehicles, and one that is also credited with having pioneered the industry. The firm is headquartered in Austin, Texas, the United States, and it also sells other energy products such as battery packs.
Cathie Wood scooped up 9,952 Tesla, Inc. (NASDAQ:TSLA) shares on December 22, 2022, even as the wider market was sharing its concerns about Tesla chief Mr. Elon Musk not paying enough attention to the company. For instance, Canaccord lowered its share price target to $275 from $304 for the company in December 2022, outlining that future growth can reverse current losses.
By the end of this year’s third quarter, 88 out of the 920 hedge funds covered by Insider Monkey had bought Tesla, Inc. (NASDAQ:TSLA)’s shares.
As was the case with Roku, Ms. Wood is Tesla, Inc. (NASDAQ:TSLA)’s largest hedge fund shareholder with a $1 billion stake that comes via four million shares.
Number of Shares Bought By Ark Investments on December 22, 2022: 484
Verve Therapeutics, Inc. (NASDAQ:VERV) is a quintessential Cathie Wood investment. The firm is a gene editing company that is headquartered in Cambridge, Massachusetts. It is developing treatments for liver diseases.
Ms. Wood believes that Verve Therapeutics, Inc. (NASDAQ:VERV) can deliver “explosive growth” if its gene editing technologies for heart problems are successful. The company’s main product is the VERVE-101 treatment which focuses on manipulating liver genes. December 2022 has been a mixed bag for Verve Therapeutics, Inc. (NASDAQ:VERV), as while VERVE-101 continues to be on FDA hold, the data requested by the agency is not limitless, and the firm stands the chance of clearing regulatory hurdles.
Insider Monkey’s Q3 2022 survey of 920 hedge funds revealed that 18 had invested in Verve Therapeutics, Inc. (NASDAQ:VERV). Ms. Wood bought 484 shares on December 22, adding to the 3.3 million that she had owned during the third quarter, making her Verve Therapeutics, Inc. (NASDAQ:VERV)’s largest investor with a $116 million stake.
Number of Shares Bought By Ark Investment on December 22, 2022: 5,992
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a biotechnology company that is developing treatments for liver diseases such as hemophilia. Alongside these, it also focuses on developing cures for cancer. The firm is headquartered in Cambridge, Massachusetts.
Cathie Wood bought 5,992 Intellia Therapeutics, Inc. (NASDAQ:NTLA) shares on December 22, 2022. During the third quarter, her hedge fund was already the company’s largest investor as it owned a massive $540 million stake in the company. During the same time period, 36 out of the 920 hedge funds polled by Insider Monkey had invested in Intellia Therapeutics, Inc. (NASDAQ:NTLA).
Number of Shares Bought By Ark Investment on December 22, 2022: 6,991
Beam Therapeutics Inc. (NASDAQ:BEAM) develops gene edited treatments for sickle cell anemia, leukemia, eye diseases, nervous system disorders, and other ailments. The firm is headquartered in Cambridge, Massachusetts.
Beam Therapeutics Inc. (NASDAQ:BEAM) scored a big win in December 2022 when the FDA lifted its hold on the company’s BEAM-201 treatment. BMO Capital raised the company’s share price target to $66 from $61 in December 2022, stating that the company has a strong treatment pipeline.
27 out of the 920 hedge funds polled by Insider Monkey for their September quarter of 2022 investments had held a stake in Beam Therapeutics Inc. (NASDAQ:BEAM). Cathie Wood bought 6,991 shares of the company on December 22, 2022, and she is also the company’s largest investor as it owns a $404 million stake.
Beam Therapeutics Inc. (NASDAQ:BEAM), Coinbase Global, Inc. (NASDAQ:COIN), Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), and Roblox Corporation (NYSE:RBLX) are some of Cathie Wood’s latest stock picks.
 
Click to continue reading and see Cathie Wood Is Loading Up On These 5 Stocks.
 
Suggested Articles:
15 Best NASDAQ Stocks To Buy
11 Biggest BNPL Companies in the World
12 Best Tech Stocks for Long-Term Growth
Disclosure: None. Cathie Wood Is Loading Up On These 12 Stocks is originally published on Insider Monkey.
Related Quotes
With that in mind, let's have a look at three stocks worth avoiding in 2023: Meta Platforms (NASDAQ: META), Affirm (NASDAQ: AFRM), and Palantir Technologies (NYSE: PLTR). E.U. regulators have threatened the company with antitrust fines that could total up to 10% of the company's annual revenue, amounting to $11.8 billion based on the past 12 months.
In this article, we will be taking a look at the 15 most hated companies in America. To skip our detailed analysis, you can go directly to see the 5 most hated companies in America. In an ideal world, companies would be supported by the general population. After all, the economy of a country defines […]
Several streets in the Little Haiti area were reopened following a shooting Sunday afternoon, and a suspect is in custody, according to Miami police.
His unique perspective also comes with a wonderful ability.
In 2019, 35.7 million people relied on the Supplemental Nutrition Assistance Program (SNAP) to eat, according to the Annie E. Casey Foundation, but enrollment had been steadily declining since 2013….
These top-tier stocks make for genius buys with the Nasdaq Composite plunging as much as 38% from its peak.
Investors who take an interest in Aclara Resources Inc. ( TSE:ARA ) should definitely note that the CEO & Director…
The cult of Croc is real — and so is this massive sale.
Detroit Lions must win final 2 games & get 1 loss by both Washington & Seattle to make playoffs, or 1 loss from either team plus 2 losses by NY Giants
The deep freeze from a deadly winter storm that walloped much of the United States will continue into the week as people in western New York deal with massive snow drifts that snarled emergency vehicles and travelers across the country see cancelled flights and dangerous roads. The massive storm has killed at least 34 people across the United States and is expected to claim more lives after trapping some residents inside houses and knocking out power to tens of thousands of homes and businesses. About 60% of the U.S. population faced some sort of winter weather advisory or warning, and temperatures plummeted drastically below normal from east of the Rocky Mountains to the Appalachians.
The Russian rouble edged higher against the dollar on Monday, recovering some ground after its largest weekly slump since early July on fears over the impact of oil and gas sanctions on Russia's export revenue. The rouble lost about 8% last week and is down 12.5% this month after an oil embargo and price cap came into force. Trading activity is likely to be light on Monday, Otkritie Research said in a note, with the rouble able to strengthen in the continuing month-end tax period, which usually see Russian exporters convert foreign exchange revenue to pay local liabilities.
I'm pretty sure it's impossible to read about these amazing women and not feel truly inspired!View Entire Post ›
The electric-vehicle pioneer's stock was down 70 percent in 2022, a remarkable amount even in this year's difficult economic climate.
Tesla is closing down production for the rest of the year in China. Don't overreact to the data point.
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a…
Temperatures will get above freezing Saturday, and will continue to go up on Christmas and into next week.
A four-day trading week will bring investors to the end of what's been a difficult year in the stock market traders won't soon forget.
If you can stomach above-average risk and volatility, two technology stocks are primed to bounce back from underserved sell-offs.
Braden Fiske is reportedly down to three schools: #USC, Notre Dame, and Florida State. This is a big transfer portal competition.
(Bloomberg) — Billionaire Elon Musk is warning against something he himself has done — borrowing against the value of securities one owns — because of the risk of “mass panic” in the stock market.Most Read from BloombergElon Musk Warns Against Margin Debt on Risk of Market ‘Mass Panic’Russia May Raise Crude Oil Exports if EU Ban Cuts RefiningBest Nonfiction of 2022: Great Books That Will Make You ThinkUkraine Latest: Putin Says He’s Ready to Talk, Blames Other SideWorld Economy Is Headed for a

source