The allure of Cathie Wood Stocks investing prowess has captured a large audience of investors. Yet, even amidst all of the optimism surrounding her investment strategies, prudent investors must be aware of the potential downside risks. While some of Cathie Wood’s early bets like Tesla have paid off, many of them have lost her clients a ton of money. However, there are some Cathie Wood Stocks to sell, and these. aresome of them.
Some investors may argue that her bets on revolutionary technologies like gene editing, robotics, and 3D printing were just too early. While others believe that the stocks she selected have a bleak future. It is no surprise that Cathie Wood remains in the spotlight, and the outcome of her bets are unforeseen.
Now, let’s discuss the 3 Cathie Wood Stocks to sell before it’s too late!
Invitae Corp (NVTA)
Invitae (NYSE:NVTA) is an American biotechnology company headquartered in San Francisco, California. They primarily operate as a genetic data company to provide actionable insights on health and DNA for its patients.
During the 2020 Covid Pandemic, Cathie Wood touting the long term growth prospects of the gene editing space. After her hail of praise from Tesla, investors began to look into her other promising stock market insights. However, what investors didn’t realize is that the gene editing technology is still in its early innings and is extremely capital intensive.
Invitae has seen strong triple digit growth over the last decade. But growth is beginning to slow and the company’s liquidity should be of major concern. As of September 30th 2023, the company had $264.7 million in cash and marketable securities. In Q3 2023, they also announced that the company is burning approximately $230 million per quarter in 2023. This should be alarming for shareholders, suggesting that they are about to run out of cash. With a liquidity crunch being inevitable, Invitae is one of the best Cathie Wood stocks to sell before 2024.
Nextdoor Holdings (KIND)
Nextdoor Holdings (NYSE:KIND) is a social networking platform that connects neighborhoods and businesses. The company went public in 2021, but has since fallen more than 80% from its all time highs.
It is no surprise that Nextdoor has underperformed the broader market over the last two years. When inflation skyrocketed in 2021, most small cap technology companies that were unprofitable fell precipitously. The truth is that the company’s growth in 2020 and 2021 were not an accurate representation of their limited growth opportunities.
In Q3 2023, revenue increased 4% YOY to $56 million. However, adjusted EBITDA loss increased to $20 million. The company is seeing a deceleration in revenue growth and losses are expected to continue. While their liquidity is strong, there is nothing exciting about their long term growth prospects. When you consider opportunity cost, investors are better off leaving Nextdoor stock with their neighbours.
2U Inc (TWOU)
2U Inc (NASDAQ:TWOU) is an American technology company that operates in the edtech space. They produce and deliver online curriculums for both non-profits, universities, and non-degree programs.
After going public in 2014, the company saw a meteoric rising more than 6X reaching an all-time-high of $98.08. However, as revenue has grown over the past 5 years, quarterly losses have plagued the company’s path to profitability. For the FY 2022, revenue increased a measly 2%. Net loss increased 65% YOY, to $322.2 million.
Looking out to 2024, analysts estimate revenue to decrease by nearly 10%. This is very important to keep in mind as the business is still losing money. Additionally, the company has approximately $878 million in long term debt. With $53.9 million in cash, they will have to raise capital to strengthen their balance sheet. As growth slows going into 2024, investors should dump this sorry Cathie Wood stocks ASAP.
On the date of publication, Terel Miles 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.
