Cathie Wood’s Investment Strategy Shows Signs of Revival
After a challenging period, Cathie Wood’s exchange-traded funds are finally experiencing positive year-to-date gains. Although she still trails the market overall in 2024, Wood continues to build out her existing positions. Her latest purchases include shares in Shopify, Meta Platforms, and Coinbase.
Shopify: A Key Holding in Ark Invest’s Portfolio
Shares of Shopify have surged 62% since hitting rock bottom this summer, finally achieving positive year-to-date returns. As Wood’s largest combined holding across all funds, Shopify’s revival mirrors the turnaround for Ark Invest. The e-commerce platform’s revenue rose 21% in the second quarter, with free cash flow more than tripling. Despite weak guidance earlier in the year, Shopify has consistently exceeded analyst profit targets.
Why Wood is Adding to Her Shopify Position
Shopify’s momentum has been strong since its well-received second-quarter earnings report in August. With revenue expected to grow at an accelerating rate in the upcoming quarter, Wood is confident in the company’s ability to meet expectations. This confidence is reflected in her decision to add to her position now, rather than waiting for the next financial update.
Meta Platforms: A Solid Beat with Room for Growth
Meta reported its third-quarter results last week, beating expectations but declining in value due to problematic guidance. However, the company’s massive reach, with 3.29 billion daily active users across its platforms, provides significant monetization opportunities. Revenue climbed 19%, and earnings per share rose 37%. Wood sees an opportunity in the market’s near-term concerns, making Meta an attractive addition to her portfolio.
Coinbase: Riding the Crypto Wave
This year has been good for crypto investors, with Bitcoin up over 60%. Although Coinbase stock has only risen 7% in 2024, the trading platform has still seen significant growth since last year. Wood is a big believer in crypto and Bitcoin, making Coinbase one of her favorite ways to cash in on the digital-currencies wave. With revenue nearly doubling in its latest quarterly report, Coinbase remains an attractive holding in Wood’s portfolio.
By following Wood’s investment strategy, investors may uncover hidden gems and capitalize on emerging trends. As she continues to build out her positions, it will be interesting to see how her portfolio performs in the coming months.
Leave a Reply