Renowned Investor Cathie Wood Acquires Three Promising Stocks in Recent Week

Renowned Investor Cathie Wood Acquires Three Promising Stocks in Recent Week

Cathie Wood was busy last week. The CEO, co-founder and lead stock picker of the Ark Invest family of exchange-traded funds (ETFs) has made several portfolio moves. Ark publishes its portfolio transactions daily, giving investors refreshing transparency into what the widely followed fund manager is doing.

What is Wood adding to his portfolios these days? It increased its holdings in UiPath (NYSE:PATH), The exchange office (NASDAQ:TTD)And Not (NYSE: NOW) last week. What does she see in these three stocks up more than 70% since the start of last year? Let’s take a closer look.

UiPath

The arguments for adopting robotics in the workplace continue to be heard. Human labor costs are increasing. Global labor shortages during the pandemic have been a wake-up call to rely on the efficiency and reliability of automation. As the leader in cloud-first software solutions for robotics and automation, UiPath is a tale of two starting lines.

UiPath is technically a halted IPO, trading at less than half the $56 per share at which it went public three years ago. However, the dynamic has become positive. The stock has more than doubled since its lowest level 14 months ago. Wood was long shares in three of her ETFs on Thursday after providing a financial update, after reducing her stake in two other ETFs earlier in the week.

Renowned Investor Cathie Wood Acquires Three Promising Stocks in Recent Week

Image source: Getty Images.

UiPath released record financial results for its fourth fiscal quarter Wednesday afternoon. Revenue grew 31%, better than expected. Its adjusted operating margin widened significantly in fiscal 2024, and UiPath reported its first quarterly profit on a reported basis as a public company. Shares initially soared in the report, but eventually drifted to close 7% lower on Thursday. Wood was a buyer despite the difficulties. This stands in stark contrast to the 27% share price rise that shareholders experienced following the previous quarterly update.

There’s still a lot to like about UiPath. Revenue growth accelerated in fiscal 2024 after consecutive years of sharp deceleration. Revenue growth accelerated in each of the four quarters of the fiscal year. With a net dollar retention rate of 119% (meaning loyal customers are spending 19% more than a year ago), customers are finding new ways to leverage the UiPath platform. Its annualized renewal rate increases the larger the customer. UiPath is also a leader in integrating artificial intelligence (AI) into robotics and automation, a priority that continues to excite growth investors.

The exchange office

Advertising may not seem like a growth industry, but The Trade Desk’s leadership position in programmatic advertising – where algorithms help allocate marketing budgets – is resilient. The Trade Desk has recorded eight consecutive years of double-digit revenue growth, a major accomplishment in an industry that has its share of ups and downs.

THE advertising technology Bellwether saw its shares rise 17% on the day it reported well-received financial results last month. Revenue increased by 23%, above market expectations. It’s a rare earnings miss for The Trade Desk, but the guidance has boosted investor enthusiasm for the stock. The Trade Desk sees its revenue rise 25% year-over-year for the current quarter, a welcome sign of acceleration.

Not

The hottest of the three titles on this list is Naked. Nubank’s parent company’s revenue in Latin America has almost tripled since the start of last year. Nubank didn’t even exist 11 years ago, and today more than half of Brazil has a financial relationship with the bankless fintech speedster.

Revenue rose 57% in its most recent quarter, with adjusted net income more than tripling. If you’re not a fan of “adjusted” earnings, I’ve buried the lede. Reported net profit increased almost six-fold. Despite its rapid growth, Nu has managed to post six consecutive quarters of reported profitability.

UiPath, The Trade Desk and Nu were solid growth stock additions to Wood’s shopping list last week. Let’s see what she buys this week.

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Rick Munarriz holds positions in Nu, The Trade Desk and UiPath. The Motley Fool features and recommends The Trade Desk and UiPath. The Motley Fool recommends Nu. The Motley Fool has a disclosure policy.

3 Hot Stocks Cathie Wood Bought Last Week was originally published by The Motley Fool

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