Despite a 75 basis point interest rate hike by the Federal Reserve, shares of Cathie Wood’s flagship exchange-traded fund (ETF), the ARK Innovation ETF (NYSEARCA:ARKK), are up about 7% the past month.
Meanwhile, Ark ETF derivatives have steadily been gaining more attention. AXS Investments is the creator of the AXS 2X Innovation ETF (NASDAQ:TARK) and the Tuttle Capital Short Innovation ETF (NASDAQ:SARK). TARK seeks to double the performance of ARKK, while SARK seeks to provide a 1X inverse return to ARKK. Since its launch last November, SARK has received inflows of $395 million, while volume for TARK has been picking up in recent months.
ETF analyst Athanasios Psarofagis added:
“In a way they help each other: AXS needs ARK, but ARK now benefits from more attention, and more trading building around their products.”
With that in mind, let’s take a look at the top stocks that Cathie Wood purchased this week.
5 Top Stocks Cathie Wood Bought This Week
1. Teladoc (TDOC)
Shares of Teladoc (NYSE:TDOC) fell by more than 10% this week after the embattled telehealth company reported earnings. In focus was a $3 billion impairment charge, which may have been attributed to the company’s $18.5 billion purchase of Livongo in late 2020. That led Teladoc to report a Q2 loss of $3.1 billion, or an earnings per share (EPS) loss of $19.22. On the bright side, revenue came in at $592.4 million, up 18% year-over-year (YOY). That figure came in above the consensus analyst revenue estimates of $588 million. Shares of TDOC are now down about 60% year-to-date (YTD).
Following the release of earnings, Wood purchased 407,800 shares of TDOC through four of her ETFs on July 28. After the purchases, Teladoc is now the seventh-largest position among all Ark Invest ETFs.
2. Toast (TOST)
Toast (NYSE:TOST) operates as a point of sale (POS) and management system provider that is specifically geared toward restaurants. The company’s products also support online ordering, contactless ordering and payroll solutions. Earlier this month, Toast announced that it had acquired Sling. The latter provides “employee scheduling, communication and management” solutions and will help Toast improve its payroll solutions. The two companies had previously established a partnership during April of last year.
From July 25 to July 26, the ARK Fintech Innovation ETF (NYSEMKT:ARKF) purchased 189,363 shares of TOST stock. This was the first purchase of the company since February 28. Following the purchase, Toast is now the 17th-largest holding in the ARKF ETF.
3. Bill.com (BILL)
Bill.com (NYSE:BILL) operates an all-in-one payables solution that involves invoices, bills and payments. The company was a major beneficiary of the coronavirus pandemic, with shares trading as high as $334 apiece. Today, BILL stock trades in the $130 range.
Prices for the company’s corporate “Pay bills and get paid” package start at $79 per month. Customers receive several features, such as payment status tracking, customized invoice templates and ACH and credit card payments. Meanwhile, enterprise pricing for the package is variable. As a result, the company’s reoccurring revenue model provides for consistent, predictable revenue.
4. Intuit (INTU)
Intuit (NASDAQ:INTU) may be most well known for its tax service solution, Turbo Tax. Mizuho analyst Siti Panigrahi reiterated his price target of $650 after the company raised its QuickBooks Online (QBO) subscription prices by 20%. The analyst noted the price hikes will combat a slowing consumer tax business in the event of a recession. Furthermore, the price target is based on an expected next twelve months price-to-earnings (P/E) multiple of 47x. He adds the price target is justified based on Intuit’s “defensive business with strong long-term fundamentals.”
On July 25, ARKF purchased 6,534 shares of INTU. After the purchase, ARKF owns a total of 32,869 shares, making Intuit the 23rd-largest position in the ETF.
5. Guardant Health (GH)
Guardant Health (NASDAQ:GH) is focused on the treatment of cancer through proprietary blood-based tests and data analytics. In June, the company announced it had purchased the remaining shares of Guardant Health Asia, Middle East and Africa (AMEA) from Softbank (OTCMKTS:SFTBY) and its affiliates. This will give the company full control over the AMEA region.
More than half of the world’s new cancer cases are estimated to come from the AMEA region. The acquisition of the remaining shares will allow Guardant to accelerate the adoption of the its blood tests to help detect and manage cancer cases. Chairman Helmy Eltoukhy added:
“We believe our blood-based tests can play a significant role in helping address the growing incidence of cancer in the region, and we look forward to continuing to support patients facing cancer diagnoses as we expand our operations in these markets.”
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.