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ARK Invest’s Cathie Wood Gets These Three Bargains – Are They Right for Your Portfolio?
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Cathie Wood, co-founder, CEO and investment manager of the ARK Invest family of exchange-traded funds, regularly discloses her stock transactions after each trading day.
Wood, known for her significant returns in 2020, has had uneven success in subsequent years but managed another stellar performance in 2024. This year’s challenges haven’t discouraged her from constantly adjusting her portfolio of growth stocks.
Recently, Wood increased his holdings in Adaptive Biotechnologies (NASDAQ:ADPT), Intellia Therapeutics (NASDAQ:NTLA), It is Shopify (NYSE:PURCHASE). Here’s a summary of these stocks, which are down 16% to 29% in 2024.
Shopify
One of Wood’s holdings, Shopify, was crucial to his successful year in 2024, but is currently in decline.
This year, shares of the e-commerce platform are down 27% from last year’s peak. A recent financial statement failed to meet market expectations for future growth, resulting in a 19% decline in share value despite a 23% revenue increase (29% without the divested logistics sector). Analysts have since lowered their price projections for Shopify.
Despite this, Shopify continued to grow its market share and maintain high free cash flow margins. Analysts forecast revenue growth of 21% this year and 20% in 2025, with substantial profitability growth forecast. Wood and others, including Goldman Sachs, believe the current sell-off is an overreaction and see it as a buying opportunity.
Intellia Therapeutics
Despite recently beating earnings estimates, Intellia Therapeutics, another key position in ARK’s portfolios, has seen its shares fall 16% year-to-date. The company specializes in developing CRISPR-based treatments, with one in the crucial third phase of clinical trials and another approaching that phase. Intellia’s substantial cash reserves provide a solid foundation for its continued research and development. Wood’s investment reflects his confidence in gene editing technologies; ARK currently holds $49,253 worth of Intellia shares.
Adaptive Biotechnologies
Wood also increased his role at genetic sequencing technology company Adaptive Biotechnologies. Although its share value has fallen 50% this year, Adaptive recently reported strong financial results, including higher revenue guidance for its minimal residual disease (MRD) business and reduced losses. However, the departure of the CFO soured investor sentiment. Despite this, Wood remains confident in the company’s future and ARK holds more than 7% of its shares.
The story continues
These changes illustrate that Wood strategically invests in companies with high growth potential, despite market volatility.
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This article ARK Invest’s Cathie Wood Gets These Three Bargains – Are They Right for Your Portfolio? originally appeared in Benzinga.com