Cathie Wood’s ARK Invest has never shied away from making bold investment moves. With the earnings season upon us, we will see a lot of movement in Cathie Wood stocks. The move could be a part of the bigger investment strategy and might set the momentum for the rest of the year. The stock market had been hitting new highs over the past months but then came the hotter-than-expected inflation report and it led to disappointing news.
The rate cut might be pushed back and stocks could underperform. In uncertain times like this, it is best to follow the steps of someone who knows how to tackle uncertainty. Cathie Wood has managed to handle the inflation well and her overall investment approach is about buying in periods of decline and then selling high.
The tech sector has been on a high since the beginning of 2024 and tech stocks are hot picks right now. Ark Innovation Fund (NYSEARCA:ARKK) has been loading up on these stocks for the upside potential driven by Artificial Intelligence. With that in mind, let’s take a look at three Cathie Wood stocks to buy now.
SoFi Technologies (SOFI)
Cathie Wood is someone who often goes bargain hunting and she has loaded up on SoFi Technologies (NASDAQ:SOFI) stock. The Ark Innovation ETF recently bought 1.67 million SOFI shares and Ark Fintech Innovation ETF bought over 235,700 shares.
The firm’s total holding in SOFI stands at 10.57 million shares, which makes it the 35th largest shareholder in the company. Buying SOFI stock below $10 is a very smart move and could lead to gains in the long term. While it is hard to predict the market, SoFi will pick pace after the interest rate cut.
The company has impressed investors with strong quarterly results and managed to report its first-ever quarterly profit. While it has yet to report a full-year profit, it is getting there. It will be interesting to see the company’s numbers in the upcoming results.
SoFi boasts of steady product growth and user growth, which leads to strong revenue numbers. Despite the strong results, SOFI stock is down 24% year-to-date and is trading for $7 today. It shows that investors aren’t very confident about the company yet.
The market is worried about the impact of student loan forgiveness but it is important to remember that the company has a wide umbrella of products and makes money from multiple segments. SoFi could be a long-term winner in the fintech industry with a banking license and strong product growth.
Palantir Technologies (PLTR)
Cathie Wood has been highly optimistic about the future of Palantir (NYSE:PLTR) and ARK Innovation ETF owns 2.8% of Palantir stock. After making the first Palantir trade in the final quarter of 2020, Cathie Wood has been doubling down on the stock.
Having bought and sold the stock multiple times, the firm currently has over 10.9 million shares, forming 1.6% of the portfolio. The biggest growth driver for Palantir is its Artificial Intelligence Platform (AIP) which has converted many leads into clients. It already holds a strong presence in the government sector and has proved its potential time and again.
While the commercial revenue may still be a small percentage of the total business revenue, Palantir ensures steady income each quarter and its press releases about winning new contracts keep catching investor’s attention. In the fourth-quarter, the commercial revenue was up 70% year-over-year.
The company signed 103 deals in the fourth quarter worth at least $1 million. Palantir enjoys steady revenue growth and will continue to grow as it expands its AI prowess. Cathie Wood scooped up the tech company’s share after the strong fourth-quarter results and lauded the company for its move toward profitability.
While many analysts remain skeptical of PLTR’s upside, Cathie Wood has picked up this undervalued stock time and again. Exchanging hands for $22 today, the stock looks undervalued to me. It is a steady stock that will not disappoint. The company has all it takes to succeed in the AI race but investors need to remain patient when it comes to the upside.
Amazon (AMZN)
Tech giant Amazon (NASDAQ:AMZN) is a part of both Cathie Wood and Warren Buffet’s investment portfolio. She first purchased the stock in 2016 and has made several trades since then. Currently Cathie Wood holds $9.46 million worth of stock which forms a decent 0.06% of her portfolio. It is one of her top 10 holdings and the firm is highly optimistic about the future of the e-commerce giant.
Amazon is known for innovation and technology and the company could also become a huge player in the space industry. From the humble beginning as a bookseller to reaching the space, Amazon has come a long way. It has become the biggest competitor of SpaceX and Cathie Wood believes the stock is undervalued if you look at the long-term picture.
While it is not cheap and is exchanging hands for $186 today, it has a lot of upside potential. The company’s fourth-quarter results were stellar and reported impressive growth in the cloud and advertising segment. It proved that the business can survive an inflationary period and a high-interest environment.
Amazon has ambitious goals and enough cash to keep investing in the business. It ended the year with $36.8 billion in free cash flow which is nothing but impressive. Already at its 52-week high, Amazon stock is set to soar higher. This is one of the best Cathie Wood stocks to add to your portfolio for the long term.
On the date of publication, Vandita Jadeja 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.
