Love her or loathe her, Cathie Wood’s magnetic pull on the investment world remains undiminished. Wood has uniquely curated portfolios brimming with disruptive tech firms and ambitious start-ups offering tremendous long-term upside potential. In its euphoric rally of 2020 to 2021, the investment maven’s flagship exchange-traded fund soared to new heights, delivering staggering triple-digit returns.
However, during the stock market rout last year, the fund plummeted more than 70% from its highs. Detractors quickly labeled her approach reckless, associating her with fleeting wealth built on shaky grounds. Moreover, her core philosophy of channeling resources into cutting-edge technology firms and growth stocks has paid dividends this year. In a risk-off market environment, her approach will likely create many millionaires.
Kratos Defense (KTOS)
Kratos Defense (NASDAQ:KTOS) shines brightly as a major contender of innovation and strategy in the vast expanse of the aerospace and defense sphere. Even with the ever-evolving global political backdrop, Kratos’ technological prowess continues to capture attention, cementing its position as one of the standout picks in Cathie Wood’s portfolio. A notable 0.8% of her holdings are allocated to this gem, and her bullish sentiment echoed further with a 2.3% share hike in the recent quarter.
Diving deeper into Kratos’ arsenal, its XQ-58A Valkyrie is positioned to revolutionize aerial combat on a path to full-fledged deployment. Complementing its tech advancements, the company recently unveiled its second quarter Non-GAAP EPS that breezed effectively past estimates. With an impressive $256.9 million in revenue, showcasing a 14.6% YOY growth, and a robust projection ranging between $980 million to $1 billion for the year, Kratos is confidently navigating the future. An appreciable 40% stock uptick YTD reaffirms its formidable stature in the defense realm.
Twilio (TWLO)
Amidst the vast landscape of cloud-based solutions, Twilio (NYSE:TWLO) has effectively carved its niche in the sector for its impeccable mobile app integration capabilities. It has been an excellent performer over the years and recently posted Q2 results, where sales grew by an enviable 10% YOY, clocking in a massive $1.04 billion, outpacing analyst forecasts by $53 million. Moreover, the transition from an 11-cent loss to impressive adjusted earnings of 54 cents per share showcases Twilio’s resilience and thriving ability.
Furthermore, it accounts for a substantial 2.3% slice of Cathie Wood’s portfolio dedicated to Twilio, increasing her stake by 12.6% in Q2. Jeff Lawson, Twilio’s Co-Founder and CEO, remains bullish over its trajectory ahead, pledging relentless growth endeavors on all fronts. It strategically moved to repurchase $485 million of its stock in the first half of the year, solidifying Twilio’s rank as a must-have in the communications stock repertoire.
CRISPR Therapeutics (CRSP)
In the rapidly evolving realm of gene editing, CRISPR Therapeutics (NASDAQ:CRSP) emerges as a groundbreaking force, harnessing the might of its popular CRISPR/Cas9 technology. Its leading candidate, exagamglogene autotemcel (exa-cel), has been met with plenty of optimism, especially for patients besieged with sickle cell disease and beta-thalassemia.
Diving deeper, the company’s robust pipeline, encompassing areas such as oncology and diabetes, paints a promising picture of the future of genetic medicine. Moreover, its Q2 announcement further amplifies this sentiment, revealing sales that skyrocketed to $70 million from a modest $158,000 last year. This dramatic surge, attributed to their synergistic collaboration with Vertex Pharmaceuticals on exa-cel, paints an upward trajectory.
Furthermore, its judicious R&D expenditure management, marked by a 17% YOY drop to $101.6 million, trimmed its net loss per share by a whopping 59% YOY, settling at 98 cents. Echoing the firm’s potential, Cathie Wood has dedicated 2.5% of her portfolio to CRISPR, signifying a vote of confidence in its pioneering path.
On the date of publication, Muslim Farooque did not have (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.
