Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood didn’t make many trades last week, but the co-founder, CEO and widely followed stock picker at Ark Invest changed her tune coming out of the Memorial Day holiday weekend, adding 10 of its existing positions.

What is she buying? Some of the most interesting buys for Ark Invest on Tuesday were UiPath (NYSE:PATH), Roblox (NYSE:RBLX)And Advanced microsystems (NASDAQ:AMD). Wood thinks it’s a good time to raise those stakes. Let’s take a closer look.

1. UiPath

Timing is everything when it comes to robotics. The same can be said about actions related to timing and robotics. Wood added more UiPath to his portfolio on Tuesday. The provider of software solutions for robotics and automation reports its first quarter financial results after the market close on Wednesday.

The stock has lagged the market this year, down 25% so far in calendar 2024. Analysts expect a slight improvement in adjusted net income with a 15% increase in revenue for the report this week. This is half of the 31% jump in turnover recorded during its previous financial update.

Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Image source: Getty Images.

The bad news is that UiPath is slowing down after reporting accelerated revenue growth in all four quarters of fiscal 2024. The good news is that it’s hard not to be optimistic about the future of robotics . The pandemic has helped highlight a labor shortage that would have been easier to survive if there was more automation in the workplace. Rising labor costs are also expected to attract more businesses to UiPath.

Investors will be hoping for another UiPath win on both ends of the income statement soon after Wednesday’s closing bell. It has exceeded adjusted profit targets over the past year. You should also keep an eye on UiPath’s net retention rate, calculated in dollars. This is a great metric that shows how much loyal customers have spent on a platform over the past year compared to the previous 12-month period. It was 119% in March, meaning loyal customers are spending on average 19% more than a year earlier. The stock has declined in four of the first five months of this year, so expectations aren’t high heading into earnings season. This is a good place to be, giving UiPath a good chance to go higher if it exceeds expectations.

2. Roblox

Roblox is another popular Wood fund that had a rough 2024. The stock is down 27% this year, but it’s still the sixth-largest stock among Ark Invest funds’ combined assets.

The online gaming platform’s latest success came earlier this month when it issued weak forecasts in its report. latest financial update. He sees booking growth and free cash flow contracting sequentially. The platform is showing signs of life. The 77.7 million daily active users it entertained in its May report represents a 17% increase from last year. Monetization is also on the rise, as the number of paying customers has increased by 13% over the past year.

Red ink and fears that Roblox’s young audience is aging are weighing on Roblox. However, good things happen when you grow your audience and revenue by a double-digit percentage.

3. Advanced Micro Devices

After three straight years of revenue growth of at least 44%, Advanced Micro Devices proved deadly last year. Revenue and net profit declined by 4% and 35%, respectively, in 2023. Investors were willing to take a broader view, which caused AMD’s stock to more than double.

It helps that AMD’s business turned positive again in the second half of this year. The increases continue so far into 2024. It also helps that AMD management has painted a rosy picture of its AI-related sales potential. Despite this positive momentum, the stock is down 25% from the all-time high reached just two months ago. It’s a dip Wood has no qualms about buying.

Should you invest $1,000 in UiPath right now?

Before buying shares in UiPath, consider this:

THE Motley Fool Stock Advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now…and UiPath wasn’t one of them. The 10 selected stocks could produce monster returns in the years to come.

Consider when Nvidia made this list on April 15, 2005…if you had invested $1,000 at the time of our recommendation, you would have $697,878!*

Equity Advisor provides investors with an easy-to-follow plan for success, including portfolio building advice, regular analyst updates, and two new stock picks each month. THE Equity Advisor the service has more than quadrupled the return of the S&P 500 since 2002*.

See the 10 values ​​»

*Stock Advisor returns May 28, 2024

Rick Munarriz holds positions in UiPath. The Motley Fool ranks and recommends Advanced Micro Devices, Roblox, and UiPath. The Motley Fool has a disclosure policy.

Cathie Wood goes bargain hunting: 3 stocks she just bought was originally published by The Motley Fool

Source Reference

Latest stories